BUA Foods revenue soars by N524.4 billion in Q3 2023
By Kingsley Odii
BUA Foods PLC, a leading Foods and Fast-Moving Consumer Goods (FMCG) company listed on the NGX, has announced its earnings results for the third quarter and nine months ending September 30, 2023. Despite the challenges posed by political and economic headwinds, the company has sustained its strong performance, with revenue rising by 81% to N524.4 billion.
The company’s Profit Tax (PAT) also experienced significant growth, increasing by 54% to N105.6 for the nine-month period in 2023. Additionally, all other performance indicators remained robust, with earnings per share growing by 53.7% compared to the same period in 2022.
The group’s financial highlights for the nine months ending September 2023 show impressive growth across various metrics. Revenue increased by 81% to N524.4 billion, driven by a y-o-y increase of 74.2% in Sugar sales, 126% in Flour sales, and 37% in Pasta. The newly introduced Rice division also contributed N995 million to the company’s top line.
Despite the significant increase in cost of sales (+74.1%) due to higher raw materials and energy costs, BUA Foods recorded a gross profit growth of 95.1% to N183.8 billion. This was supported by a slight adjustment in selling prices and new market penetration strategies. The company also increased its selling and distribution expenses by 95.8% and administrative expenses by 76.3% to support aggressive sales strategies and general expenses.
BUA Foods’ operating profit grew by 94.5% to N156.9 billion, benefiting from top-line growth, local market expansion, and ongoing expansion plans. Profit before tax increased significantly by 50% to N111.4 billion, while net profit for the period rose by 53.6% to N105.6 billion. The company’s total assets also increased by 24.8% to N757.8 billion, driven by growth in trade and other receivables.
Commenting on the results, Engr. Ayodele Abioye, the Managing Director of BUA Foods, expressed satisfaction with the company’s performance. He credited the strong growth to the strength of their business strategy, the dedication of their exceptional team, and the support of their strategic partners.
“We are pleased to report a strong and successful fiscal YTD performance for BUA Foods having delivered strong top and bottom line returns across business portfolios and key financial metrics. We have experienced double-digit growth within the period with revenue YTD up by 81% and PAT by 54%, underscoring the strength of our business strategy, dedication of our exceptional team and support of our strategic partners,” Ayodele said.
“These were achieved despite the complexities presented by rising inflation, high interest rate resulting in pressure on consumer income, and Naira depreciation which led to FX losses,” he further added.
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