BUA Foods, a fast-moving consumer goods firm, recorded a 91 percent after-tax profit growth to N201.4 billion in the nine months of 2024 from N105.6 billion in the similar period of 2023.
The growth in after-tax profit can be attributable to the firm’s other income, which increased to N25.17 billion in the nine months of 2024 from N1.29 billion in the same period of 2023.
“We are thrilled to have sustained a remarkable growth trajectory, underscoring the impact of our strategy, innovative product development, and steadfast commitment to quality, even in the face of a challenging business climate,” Ayodele Abioye, managing director of BUA Foods, said in a statement.
“We saw the benefits of our production capacity expansion and product innovation, as we witnessed an 11 percent growth in aggregate volume which has further strengthened our position within the industry,” he said.
Read also: BUA Foods’ after-tax profit surges 91% on other income
Here are seven highlights from BUA Foods’ nine-months financial books:
Naira devaluation weigh heavily on raw materials to boost input cost
Cost of sales increased by 116 percent, driven by an increase in raw materials cost and energy cost.
The firm’s cost of sales rose to N736.97 billion in nine months of 2024 from N340.64 billion.
“The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices of raw materials. This resulted in a higher cost of production,” BUA Foods said in its earnings release statement.
The firm also said the increase in its cost of sales was driven by an increase in raw materials cost and energy cost during the period.
Revenue grew 104 percent
Revenue surged 104 percent to N1.07 trillion from N524.4 billion in 2023, while input cost grew to N736.9 billion from N340.6 billion.
The growth was driven by 73 percent growth in sugar sales to N544.4 billion in nine months 2024 from N315.1 billion in the same period of 2023, 160 percent growth in flour sales to N389.9 billion from N149.9 billion and 131 percent in pasta sales to N134.8 billion from N58.3 billion).
Read also: BUA Foods expands capacity to reduce food scarcity
Diesel cost increase switched up distribution cost
Selling and distribution expenses jumped 45 percent to N29.31 billion in the nine months of 2024 from N20.27 billion in the same period of 2023, due to increase in cost of diesel within the period.
Administrative expenses grew 84%
BUA Foods’ administrative expenses increased by 84 percent to N14.54 billion in the nine months of 2024 from N91 billion in the similar period of 2023.
Operating expenses surged 56%
Total operating expenses increased by 56 percent to N43.86 billion in the nine months of 2024 from N28.18 billion on the back of increase in selling and distribution cost along the supply chain to customers.
Total equity increased by 39 percent on growth in retained earnings
Total equity increased by 39 percent to N364.45 billion as of nine months of 2024 from N262.06 billion in the full year of 2023 mainly due to a growth of 40 percent in retained earnings to N356.3 billion as of nine months of 2024 from N254 billion in the full year of 2023.
Earnings per share surged to N11.2 per share
BUA Foods’ earnings per share grew to N11.19 per share from N5.87 per share during the period reviewed.
