BUA Foods Plc, one of Nigeria’s leading fast-moving consumer goods companies, has recorded a 109 percent growth in revenue, crossing the trillion-naira mark for the first time since 2021.
According to the company’s audited financial statements for the year ended December 31, 2024, BUA Foods recorded revenue of N1.53 trillion, more than double from the N729.4 billion in 2023 and the highest annual revenue in the company’s history since listing on the Nigerian Exchange in 2021.
The report shows that the growth was driven by an increased demand for the company’s core products such as sugar, flour, and pasta, as well as increased production capacity, strategic pricing, and deeper market penetration across Nigeria.
Despite recording a N178 billion exchange loss due to currency depreciation, the company’s pre-tax profit rose by 162.9 percent to N284.3 billion from N108 billion, while after-tax profit grew by 137.3 percent to N265.99 billion from N112 billion, strengthening BUA Foods’ position as one of Nigeria’s most profitable consumer goods companies in 2024.
Ayodele Abioye, managing director of BUA Foods, said the results underscored the company’s ability to navigate challenges with agility and its resilience, as it continues to create value for all stakeholders.
Read also: BUA Foods to pay N234bn as final dividend
“Despite significant macroeconomic challenges, our business navigated the resulting impact on supply chain costs and foreign exchange losses effectively. The cumulative impact of our expansion strategy has enabled our capability to fulfill increased demand from our customers and enhanced internal operational efficiencies,” he said.
The MD expressed his optimism for operations and strategic investment initiatives affirming that the company will continue to be directed towards addressing food supply challenges.
“Looking ahead with optimism, coupled with stability in the macro-economic environment, we would continue to focus our operations and strategic investment initiatives towards addressing food supply challenges. Also, with the concerted efforts of our board, management and frontline associates, we aim to deliver a strong performance with sustained value creation for all stakeholders in line with our north-star objectives,” he said.
In 2023, the company expanded its flour production lines to meet this growing demand from Nigeria’s bakery industry and small-scale food businesses, which rely heavily on affordable, locally produced flour.
While sugar remains BUA Foods’ top-selling product, the company saw a significant boost from its flour segment, which grew by 171 percent year-on-year to N589.5 billion from N216.7 billion in 2023.
This contributed over N541 billion to revenue in 2024, accounting for 35.5 percent of total sales from 27.4 percent in the previous year.
However, Sugar, long the mainstay of BUA Foods’ business, brought in N734.5 billion, making up 48 percent of the total revenue which marks a slight drop in contribution percentage, reflecting the company’s growing diversification and shift toward other product lines.
The company’s branded pasta products, launched two years ago, continue to gain traction, especially among price-sensitive consumers looking for alternatives to imported brands. The pasta segment contributed N197 billion to revenue, representing a 12.9 percent share.
In addition, local sales accounted for 95.5 percent of the company’s total revenue in 2024, underlining BUA Foods’ dominance in the Nigerian market.
Despite the stellar performances, BUA Foods was not immune to the macroeconomic challenges of 2024. The company reported an increase in finance costs by 15.1 percent to N21.65 billion from N18.81 billion in 2023, driven primarily by a N173 billion in foreign exchange losses following the naira devaluation.
Also, BUA Foods faced higher raw material costs and currency-related pressures. Raw materials accounted for over 91 percent of its cost of sales as cost of sales increased by 110 percent to N984.98 billion from N468.98 billion in 2023.
Still, the company managed to improve its operating profit margin by 376bps to 32 percent in FY 2024 supported by lower impairment losses and tight control over expenses.
Selling and distribution expenses increased by 33.4 percent to N39.83 billion in FY 2024 from N29.85 billion while Administrative expenses also increased by 17.8 percent to N20.28 billion from N17.21 billion.
The company’s debt profile showed improvement, with total debt dropping to N391.9 billion, down from the previous year. EBITDA increased by 131.5 percent to N499.4 billion in FY 2024 from N215.7 billion, driven by growth in gross profit. Also, the EBITDA margin appreciated by 314 bps to 32.7 percent from 29.6 percent in 2023.
On the back of its strong performance, the board of directors has proposed a dividend of N13 per share which is more than double the N5.50 paid in 2023.
