BUA Foods grows pre-tax revenue 47% to N117bn in 2022

By Onome Amuge

Consumer goods company, BUA Foods, sustained its leadership position as Nigeria’s most profitable foods company listed on the Nigerian Exchange (NGX) with an operating profit of  N117.5bn in 2022,  for the financial year ended December 31, 2022,representing 47 per cent growth from N79.8 billion posted in the corresponding period of 2021.

BUA, in its audited consolidated and separate financial statement for the full year 2022, disclosed that its strong performance across all market parameters was boosted by top-line growth driven by price adjustment and  export sales amid economic headwinds.

The financials of the Fast Moving Consumer Goods (FMCG) company showed a profit after tax of N91.3 billion , representing an increase of 31 per cent compared to N69.7bn posted for the same period in 2021.

Furthermore, the company stated that its total operating expenses surged by 33 per cent to N33.9 billion in 2022 from  N24.7 billion recorded in 2021 on the back of a significant increase in selling and distribution costs along the supply chain to customers.

Notably, BUA’s revenue for FY 2022 rose 26 per cent year-on-year to N418.3 billion from FY 2021’s N333.2 billion, while profit before tax growth went up by 38 per cent to N107.2 billion in 2022.

A breakdown of the company’s operating divisional performance showed that the sugar division of BUA Foods contributed 66 per cent to revenue in 2022 at N274.4 billion, representing a 32 per cent increase from N209.4 billion posted in 2021. The flour division contributed 20.6 per cent to revenue in 2022 at N85.9 billion, climbing 23.8 per cent above N69.4 billion in 2021, while the pasta division contributed 14 per cent to revenue in 2022 at N57.4 billion, a five per cent increase from N54.4 billion in 2021.

Gross profit was up 29 per cent to N132.8 billion in FY 2022, representing 29 per cent increase when compared with N103 billion in FY 2021, even as gross profit margin increased by 90 basic points to 32 per cent in FY 2022 due to the slight selling price adjustment within the year.

BUA also disclosed that selling and distribution expenses increased by 40 per cent to N14.2 billion in FY 2022 from N10.1 billion in FY 2021. This was attributed to an increase in the cost of diesel within the period. Administrative expenses also rose by 28 per cent to N18.7 billion within the period under review against N14.6 billion in FY 2021, driven majorly by a 132.5 per cent increase in general expenses to N5.4 billion in FY 2022 compared to N2.3 billion in FY 2021.

Meanwhile, the company’s earnings per share increased by 20 per cent from the previous year, while a dividend of N4.50k was proposed for 2022, N1 above N3.50k registered in 2021.

Commenting on the financial statement, Ayodele Abioye,the managing director,BUA Foods, said,BUA Foods Plc continued to maintain a leading position as the most profitable Foods and FMCG listed company in Nigeria with a strong financial performance despite the unending disruption of the business climate with high input costs, and currency devaluation resulting in increased operational costs.

“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,” Abioye said.