BUA Foods Plc has announced its results for the unaudited first half (H1) financials for the period ended 30 June 2024 with a growth of 38 per cent in profit after tax.
This was contained in the company’s financial statement released to the Nigerian Exchange Limited and the investing public seen by NewsNGR.
Profit after tax grew by 38 per cent to N130.9bn in H1 2024 from N95.1bn recorded in 2023. while the Earnings Per Share (EPS) grew by 37 per cent to N7.27 in the first half 2024 from N5.29 in the corresponding period.
Profit before tax increased by 25 per cent to N137.18bn in the first half 2024 from N109.38bn posted a year earlier.
Revenue grew by 110 per cent year-on-year to N672.3bn in HI 2024 as against N320.9bn posted in 2023.
According to the report, the growth was due to year on year increase of 88 per cent sugar sales to N369.7bn from N196.5bn recorded in H1 2023, 164 percent in Flour sales to N227.9bn as against N86.05bn in H1 2023, and 95 per cent in Pasta sales to N74.03bn from N37.9bn in first half of 2023.
Cost of sales increased by 141 percent to N453.90bn in H1 2024 as against N188.09bn reported in 2023.
This was driven by an increase in raw materials cost and energy cost.
The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices of raw materials.
This resulted in higher cost of production. Gross profit increased by 64 percent to N218.43bn in H1 2024 from H1 2023 which stood at N132.8bn.
Administrative expenses also increased by 101 per cent to N10.08bn in H1 2024 as against N5.01bn posted in 2023.
Total operating expenses increased by 59 per cent to N28.44bn in H1 2024 as against H1 2023 which stood at N17.86bn.
This was on the back of the increase in selling and distribution costs along the supply chain to customers.
The Managing Director of the company, Engr. Ayodele Abioye, speaking on the results, said that the first half of the year has been one of significant resilience and achievements for the company.
“We attained a robust financial performance, with total revenue increasing by 110 percent to N672.3bn compared to the same period last year.
Our gross profit stands at N218.4bn, reflecting a growth of 64 percent.
This solid performance is a testament to the efficacy of our strategic initiatives, operational efficiency, and unwavering dedication of our board, management, and other members of staff.
During this period, we have made significant strides in executing our strategic plans, successfully launching new products, specifically, macaroni, premium pasta and semolina to meet the yearnings of our customers,” Abioye said.
He noted that the company’s diversified portfolio and expansion into new markets impacted revenue growth while strengthening its partnership with key stakeholders.
“We also maintained a strong focus on cost optimization, resulting in sustained margins and profitability.
Looking ahead, we remain confident in our ability to navigate the challenges and opportunities in the market.
We will continue to leverage our strong and orchestrated supply chain system to deliver a great financial performance in line with our strategic vision for sustainable growth and value creation for all stakeholders,” he said