Nigeria’s largest food and FMCG company, BUA Foods Plc has released its unaudited financial statement for Q1 2023. The group recorded a turnover of N144.3 billion during the quarter in review, a 60.2% increase year-on-year from the N90.06 billion recorded in Q1 2022.
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With a cost of sales of N87.66 billion, the company recorded a gross profit of N56.66 billion, a 100% increase year-on-year from the N28.33 billion recorded in Q1 2022. After deducting selling expenses as well as distribution and administrative expenses, the company recorded an operating profit of N48.16 billion, an 81.8% increase year-on-year from the N26.5 billion recorded in Q1 2022.
The company recorded a profit before tax of N45.9 billion, a year-on-year increase of 85% from the N24.8 billion recorded in Q1 2022. With income taxes of N5.5 billion, the company’s Profit After Tax (PAT) hit N40.5 billion in Q1 2022, up by 77.1% year-on-year from the N22.8 billion PAT recorded in Q1 2022.
During the quarter under review, the company generated the most revenue from the sale of fortified sugar, N61.6 billion. Non-fortified sugar, bakery flour, pasta, wheat bran, head rice, and molasses generated sales revenue of N31.4 billion, N29.6 billion, N19.4 billion, N1.7 billion, N384 million, and N188.65 million, in that order, for the company.
In Q1 2023, the company’s expenditure on raw materials amounted to N79.9 billion, representing a YoY surge of 74.8% from N45.3 billion spent in Q1 2022. The company spent N3.1 billion on energy costs within the quarter, an increase of 72.3% year-on-year from Q1 2022. The increase in raw material costs can be attributed to the global inflationary pressures stemming from the Russia-Ukraine conflict and the escalating inflation in Nigeria. In addition, the surge in energy costs can be linked to the skyrocketing cost of diesel in Nigeria, which experienced a hike of more than 200% in 2022.
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Following its listing on the Nigerian Stock Exchange in 2022, BUA Foods Plc emerged as Nigeria’s largest food company, with a market capitalization exceeding one trillion, the only food company to achieve such a feat. The company has 18 billion issued shares, and Abdulsamad Rabiu, the company’s Chairman, directly holds 89.85% of the company’s issued shares. He indirectly holds another 2.78% of the shares through BUA Industries Limited.
