2023 9M: BUA Foods reports a 50% growth in pre-tax profit

BUA Foods reported its 2023 9M results showing pre-tax profits grew by 50% year on year, reaching 111.402 billion.  

Key highlights 9M 2023 vs 9M 2022  

• Revenue: N524.428 billion +80.95% YoY  
• Cost of sales: N340.648 billion +74.12% YoY  
• Gross Profit” N183.780 billion +95.15% YoY  
• Administrative expenses: N7.913 billion +76.27% YoY  
• Selling and Distribution expenses: N20.273 billion +95.81% YoY  
• Operating profit: N156.883 billion+94.49% YoY  
• Finance cost: N12.200 billion +90.75% YoY  
• Foreign Exchange loss: N33.281 billion 
• Profit for the period: N105.618 billion +53.60% YoY  
• Earnings per share: N5.87 +53.66% YoY 
• Cash and short-term deposits: N82.959 billion +157.93%.  
• Total Assets: N757.846 billion +24.80% 
• Retained earnings: N247.522 billion +11.04% 

More Insights:

BUA Foods recorded impressive growth in both revenue and profit, even in the face of rising costs and foreign exchange losses, maintaining healthy profit margins.  

• The substantial growth in pre-tax profit can be directly attributed to the increase in revenue, primarily driven by increased sales across various product segments, especially fortified sugar and pasta.  
• Moreover, the gross profit showed substantial growth, surpassing both the increase in revenue and the rise in the cost of sales, signalling a positive outlook for the company’s profitability. 
• Although the company did incur a substantial foreign exchange loss, it managed to achieve a significant increase in profit for the period, highlighting its ability to offset losses and sustain overall profitability.