BUA Foods Reports Record Earnings For 2023

BUA Foods Plc is the only entity to have recorded double digit growth in earnings since the start of the year, cementing its position as the best consumer goods firm.

Despite inflationary pressures, foreign exchange challenges, and decrepit infrastructure, BUA Foods grew profit by 22.10 percent to N111.53 billion in December 2023 from N91.34 billion as at December 2022.

Gross profit was up 89.26 percent to N251.32 billion in the period under review from N132.79 billion as at December 2022.

Operating profit spiked by 81.53 percent to N213.90 billion in December 2023 from N117.49 billion as at December 2022.

The company enjoyed upward adjustment to price in order to fend off rising input costs as revenue surged by 74.13 percent to N728.47 billion as at December 2023 from N418.34 billion as at December 2022.

“This is a solid performance in the face of an unending challenging macro environment. BUA foods delivered strong growth despite the persistent devaluation of the naira during the period, which led to a substantial and negative impact of foreign exchange losses,” said Ayodele Abioye, the Managing Director of BUA Foods.

“Our expansion strategies across all frontiers continue to crystallize in supporting growth. We remained committed to accelerating delivery in alternative and local raw materials sourcing across all our operating units, this is including the BIP project for sugar development as a softening opportunity to rely less on forex,” said Abioye.

BUA Foods maintains an extensive supply chain and is actively involved in backward integration initiatives, particularly focusing on sugar and promotion of local paddy rice sourcing.

To further develop the agricultural value chain and enhance local sourcing, as part of its initiative, the company plans to expand its farm-to-table initiatives to involve collaboration with external growers to source wheat and edible oils.

Analysts at Meristem Securities Limited see the revenue of the consumer goods giant crossing the N1 trillion mark by 2024.

“As we look ahead, our integrated supply chain execution strategy will continue to be strengthened to sustain the delivery of growth across our financial metrics. We are confident in our plans for the year 2024 in the face of the business climate uncertainties. We remain committed to creating long term value to all our stakeholders and staying true to our creed of nourishing lives,” said Abioye.t

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