BUA Foods Plc has announced its results for the unaudited nine months for the period ended 30 Sept 2024.
The company in a notice to the Nigerian Exchange Limited seen by NewsNGR said that its gross profit increased by 82 per cent to N333.82bn in nine months of 2024 against N183.7bn reported in the corresponding period of 2023.
However, gross profit margin depreciated by 400 basis points to 31 per cent in nine months 2024 against 35 per cent reported in the comparable period of 2023.
Operating profit grew by 101 per cent to N315.12bn in the third quarter of 2024 from N156.88bn posted in 2023 benefitting from top-line growth driven by price adjustment and volume increase due to an increase in demand for the company’s flour and pasta products.
Operating profit margin, however, dropped marginally to four per cent during the period under review from five per cent the previous year.
Revenue grew by 104 per cent year-on-year to N1.07trn in the third quarter of 2024 as against N524.4bn posted in 2023. This according to the company was due to a year-on-year increase of 73 per cent in sugar sales to N544.4bn from N315.1bn in 2024, 160 per cent in flour sales to N389.9bn from N149.9bn in 2023, and 131 per cent in pasta sales to N134.8bn as against N58.3bn reported in 2023.
Cost of sales increased by 116 per cent to N736.97bn in 2024 from N340.64bn in 2023. This was driven by an increase in raw materials cost and energy costs.
The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on the prices of raw materials.
This resulted in a higher cost of production. Gross profit increased by 82 per cent to N333.82bn in the third quarter of 2024 as against N183.7bn reported in 2023.
However, gross profit margin depreciated to 31 per cent in 2024 from 35 per cent the previous year.
Commenting on the results, the Managing Director, Engr. Ayodele Abioye said: “We are thrilled to have sustained a remarkable growth trajectory, underscoring the impact of our strategy, innovative product development, and steadfast commitment to quality, even in the face of a challenging business climate. Revenue grew by 104 per cent to N1.07trn compared to the same period last year, while our gross profit stands at N333.8bn, reflecting a growth of 82 per cent.
“We saw the benefits of our production capacity expansion and product innovation, as we witnessed an 11 per cent growth in aggregate volume which has further strengthened our position within the industry.
“Looking ahead, we will remain steadfast in addressing current food supply challenges by leveraging newly commercialized supply chain assets across our business divisions. We would maintain focus on driving internal efficiencies for business growth towards delivering long-term shareholder value”