NIGERIA – BUA Foods, a leading Food and Fast-moving consumer goods (FMCG) in Nigeria has announced a remarkable achievement in its financial performance, reporting a profit after tax (PAT) of N112.1 billion (US$85M) for the fiscal year 2023, a 22.7 per cent increase from the previous year’s figure of N91.3 billion (US$70M).

This impressive growth is particularly notable amidst an FX loss of N81.9 billion (US$62.4M), attributed to the devaluation of the Naira.

According to the Group’s audited financial statement filed on the Nigerian Exchange Group (NGX), its revenue witnessed a remarkable surge of 74.4 per cent, reaching N729.4 billion (US$555M) from the N418.3 billion (US$318M) reported in 2022.

This exceptional growth was primarily fueled by a significant increase in sales across various product lines, notably including bakery flour, fortified sugar, and the successful introduction of BUA Rice to the market.

Fortified sugar emerged as the leading revenue driver for the group, with sales skyrocketing to N339.7 billion (US$258M), marking an impressive 162.8 per cent increase from the previous year’s N129.2 billion (US$98M)

Similarly, revenue from bakery flour witnessed substantial growth, reaching N200.2 billion (US$152M), a remarkable 151 per cent increase from N79.7 billion (US$61M) in 2022.

Additionally, the group recorded N2.1 billion (US$ 1.6M) in revenue from its rice business. Notably, a significant portion of the group’s revenue, accounting for 95.5 per cent, was generated from sales within Nigeria, underscoring a robust domestic market presence.

However, alongside the impressive revenue growth, the company also experienced a notable rise in the cost of sales, primarily attributed to a significant increase in the cost of raw materials consumed.

Expenditure on raw materials surged to N447.6 billion (US$341M) in 2023, marking a 72 per cent rise from the previous year’s N260.2 billion (US$180M).

Despite the challenges posed by increased costs, the Group’s gross profit amounted to N260.46 billion (US$198M), reflecting a substantial 96.1 per cent improvement year-over-year.

Furthermore, the total assets of the company reached N1.07 trillion (US$814M) in 2023, representing a significant increase from the previous year’s N607.22 billion (US$462M).

In light of these achievements, the Board of Directors has recommended a dividend payment of N5.50 per ordinary share of 50 kobo, compared to N4.50 declared in the previous year, underscoring the company’s commitment to delivering value to its shareholders.

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