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Wednesday, June 7, 2023

BUA Foods Consistent Earnings Growth Validates Top Stock Performance

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BUA Foods Plc consistent strong earnings growth even amid a tough and unpredictable macroeconomic environment validates the consumer goods giant being one of the top performing stocks that has become an allure of investors.

The consumer goods firm that listed on the stock exchange in January 2022 has gained 56.15 percent so far this year, which outperformed the NGX 30 and NGXASI Index’s 2.10 percent and 0.95 percent respectively.

And the positive year to date (YTD) is partly due to an impressive financial performance as investors see the company’s future growth prospects as being propitious.

BUA Foods’ net income spiked by 77.14 percent to N40.68 billion as at March 2023 from N22.84 billion as at March 2022.

It is worth noting that the consumer goods giant is using its capital in generating higher profit as the return on capital employed (ROCE) increased to 13.70 percent in March 2023 from 8.80 percent the previous year.

The company earns more in relation to each Naira spent on production as gross profit surged by 100 percent to N56.65 billion as at March 2023.

Operating profit followed the same growth trajectory as it surged by 81.76 percent to N48.15 billion in the period under review from N26.49 billion the previous year.

BUA Foods is the leading producer of fortified and non-fortified sugar in West Africa.

 It operates the second-largest sugar refinery in West Africa, with a total refining capacity of 1.5mn MTpa.

It produces flour and bran for large-scale and small-scale use and it Owns flour milling plant with a capacity of 500,000 MTpa; operating at 84% capacity.

It owns pasta plant with current capacity of 250,000 MTpa; operating at 54% capacity and the company owns 200,000 MT per  annum rice milling plant.

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