BUA Foods Plc Revenue Rises by 26% to N418.3 Billion

BUA Food Plc., makers of BUA Pasta, BUA Sugar, and BUA Premium Wheat Flour, among others have released their FY 2022 audited results. The company recorded a strong financial performance as they recorded gross revenue of N418.3 Billion and a Profit Before Tax of N107.2 Billion.

Also Read: BUA Foods Plc Acquires Shipping Vessels To Boost Sugar Export Operation

The company’s proposed dividend is N4.50k per share, up from N3.50k proposed in 2021.

The company recorded a 26% growth in its revenue, with gross profit rising to N132.8 billion, a 29% year-on-year growth from FY 2021. Profit after tax hit N91.3 billion, a 31% increase from the N69.7 billion recorded in 2021.

Engr Ayodele Abioye, the Managing Director of BUA Foods Plc commented on the results, stating:

“BUA Foods Plc continued to maintain her leading position as the most profitable Foods and FMCG listed company in Nigeria with PBT of N107.2 Billion, a growth of 38% on prior year. This is despite the unending disruption of the business climate with high input costs, currency devaluation resulting in increasing operational cost.

“We remain resolute to navigate the numerous business headwinds to continue delivering double-digit growth with a sustained focus on our market expansion strategy across our business segments. Delivering long-term values to all our stakeholders as we continue to nourish lives remains cardinal”

Key Highlights From the Performance

The 26% revenue increase was driven by a 32% year-on-year rise in Sugar sales, which amounted to ₦274.4 billion (₦209.4 billion in FY 2021), a 23.8% increase in Flour sales to ₦85.9 billion (₦69.4 billion in FY 2021), and a 5% growth in Pasta sales, reaching ₦57.4 billion (₦54.4 billion in FY 2021).

The rise in the cost of sales was significant, with a 24% increase to ₦285.6 billion in FY 2022, compared to ₦230.3 billion in FY 2021. The increase was largely due to higher costs of raw materials and energy. The prevailing high cost of inputs and continued depreciation of the Naira against the US Dollar led to elevated prices for raw materials, which ultimately resulted in higher production costs.

Also Read: MTN Nigeria Pre-Tax Profit Rises By 22.3% in 2022

There was a significant surge in selling and distribution expenses, which rose by 40% to ₦14.2 billion in FY 2022, compared to ₦10.1 billion in FY 2021. This was mainly due to a substantial increase in the cost of diesel during the period. There was also a 28% rise in administrative expenses, reaching ₦18.7 billion in FY 2022, compared to ₦14.6 billion in FY 2021. The increase was mainly driven by a significant surge in general expenses, which rose by 132.5% to ₦5.4 billion in FY 2022, up from ₦2.3 billion in FY 2021, as well as increased travel and transportation fees.

In FY 2022, there was a 33% surge in total operating expenses, which amounted to ₦33.9 billion, compared to ₦24.7 billion in FY 2021. This increase was primarily due to a significant rise in selling and distribution costs incurred along the supply chain to customers.

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