BUA Foods Plc has reported a remarkable 38% increase in profit after tax, reaching N130 billion for the half-year ending June 2024, up from N95.18 billion in the same period last year.
This growth comes despite ongoing macroeconomic challenges, as detailed in the company’s recent financial results filed with the Nigerian Exchange Limited.
The company’s revenue surged by 110% to N672.3 billion, a notable rise from N320.9 billion in H1 2023. This revenue growth was largely driven by substantial performance improvements in its sugar, flour, and pasta divisions. Sugar sales rose by 88% to N369.7 billion, flour sales jumped 164% to N227.9 billion, and pasta sales increased by 95% to N74.03 billion.
Gross profit saw a 64% increase, reaching N218.4 billion, and operating profit climbed by 75% to N202.3 billion, reflecting enhanced operational efficiency. However, the cost of sales escalated by 141% to N453.9 billion, impacting overall profitability. Despite this, BUA Foods expanded its asset base, with total assets increasing by 3.3% to N1.11 trillion.
Ayodele Abioye, Managing Director of BUA Foods, highlighted the company’s robust performance and strategic initiatives. He emphasized successful new product launches and ongoing cost optimization efforts. Abioye expressed confidence in maintaining strong financial performance through strategic vision and effective supply chain management.
BUA Foods’ stock has also seen a significant rise, appreciating by 96.43% from N193.4 per share in December 2023 to N379.9 per share by August 2, 2024. This growth outpaces other consumer goods stocks, underscoring the company’s strong market position.
Analysts attribute BUA Foods’ success to its diversified portfolio and strategic market expansion, which have positively impacted its revenue growth and overall performance.
