BUA Foods records 31% growth in profit after tax

Consumer goods company, BUA Foods, has reported a 31 per cent appreciation in its profit after tax for the financial year ended December 31, 2022, when compared to the previous year.

This was disclosed in the 2022 financial year results of the company filed with the Nigerian Exchange Limited on Wednesday.

In its 2022 financials, profit after tax surged to N91.3bn representing an

increase of 31 per cent from N69.7 billion posted for the same period in 2021. Its 2022 full-year revenue also rose by 26 per cent to N418.3bn from N333.2bn in 2021.

The Fast Moving Consumer Goods company said that it maintained its leadership position in the market despite economic headwinds.

Its profit before tax growth went up by 38 per cent to N107.2 billion in 2022. Other performance indicators are also on an upswing as earnings per share increased by 20 per cent from the previous year. A dividend of N4.50k was proposed dividend for 2022 (2021: N3.50k).

Commenting on the results, the Managing Director, Engr. Ayodele Abioye, said, “BUA Foods Plc continued to maintain her leading position as the most profitable Foods and FMCG listed company in Nigeria with PBT of N107.2 Billion, a growth of 38 per cent on the prior year.

This is 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.”

Meanwhile, the group said that its total operating expenses increased by 33 per cent to N33.9 billion in 2022 (2021: N24.7 billion) on the back of a significant increase in selling and distribution costs along the supply chain to customers.

Its operating profit also grew by 47 per cent to ₦117.5bn in 2022 (2021: ₦79.8bn) benefitting from top-line growth driven by price adjustment and our export sales.

A breakdown of the operating divisional performance showed that the sugar division of BUA Foods contributed 66 per cent to revenue in 2022 (2021: 64 per cent). The flour division contributed 20.6 per cent to revenue in 2022 (2021:16 per cent).

The pasta division contributed 14 per cent to revenue in 2022 (2021: 20 per cent).