BUA Foods Plc (NGX: BUAFOODS) has reported a profit of N90.40bn for the 2022 financial year ended 31st December, 2022.
The food company’s unaudited financial statements for the year analyzed by Investogist, shows that Bua foods achieved a 29.57% year-on-year growth in profit after tax.
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Analysis of Statement of Profit or Loss and Other Comprehensive Income
- Revenue: The company’s revenue was up by 25.37% to N417.81bn from the N333.27bn earned in 2021. The bulk of the revenue came from the sales of sugar; N144.29bn from non-fortified sugar and N129.24bn from fortified sugar. Other significant contributions to the company’s revenue were the N79.86bn and N57.40bn from the sales of Bakery flour and pasta respectively.
- Cost of Sales: The cost of sales went up 22.58% to N282.31bn, as cost of raw materials, energy, depreciation and other factory expenses were all on the rise. While cost of raw materials went from N211.20bn to N255.65bn, the cost of energy went from N9.15bn to N11.73bn.
- Gross Profit: A gross profit of N135.50bn was posted for the year in review, a 31.61% increase on the N102.95bn it posted in the preceding year. BUAFOODS recorded an improvement on its Gross Profit Margin, from 30.89% in 2021 to 32.43% in 2022.
- Administrative Expenses: BUAFOODS reported a 22.47% decrease in administrative expenses, from N14.62bn to N11.34bn. N3.99bn was the highest expense incurred by the company followed by N2.13bn spent on hotel, accommodation event space etc. and N1.16bn recorded as depreciation.
- Selling and distribution expenses: N17.98bn was spent on selling and distribution of the company’s products. This was 77.45% higher than the N10.13bn spent in the preceding years.
- Profit before tax: A profit before tax of N100.63bn was posted in the year, 29.45% year-on-year growth. An income tax of N10.23bn was paid on the company’s profit in 2022 (2021: N7.97bn).
- Profit after tax: The profit after tax increased by 29.57% to N90.40bn (2021: N69.76bn).
- Earnings per share: BUAFOODS posted an Earnings per Share of N5.02 for the period under review.
Analysis of Statement of Financial Position
- Cash and cash equivalents: The cash and cash equivalent held by BUAFOODS as at December 2022 went up 7.14% to N32.50bn.
- Trade and other receivables: The company’s trade and other receivables jumped 172.47% to N142.11bn from N52.16bn. This increment was recorded under what the company termed “other receivables” which saw an increase from N50.12bn to N132.64bn.
- Total Assets: The company’s assets went up by 3.14% to N612.10bn. The bulk of the assets was the company’s property, plant and equipment’s N324.71bn, followed by the N142.11bn trade and other receivables.
- Loans and borrowings: The company’s loans went up by 38.91% to N195.42bn.
- Total Liabilities: The total liabilities dropped by 6.58% to N366.88bn, from the N392.75bn. Other than the N195.42bn loans and borrowings, the company also holds N54.65bn trade and other payables.
- Shareholder’s fund: The shareholder’s fund grew by 22.17% to N245.21bn as at 31 December 2022. The retained earnings, the major component of the Shareholder’s fund rose by 23.09% to N237.15bn.
Analysis of Statement of Cash Flow
- Operating activities: BUA Foods generated N132.12bn from operating activities (N871.69mn was used in the preceding period).
- Investing activities: It used N10.30bn in investing activities, most of which was used for the purchase of property, plant and equipment (N104.39bn was used in the preceding period).
- Financing activities: N121.77bn was used in financing activities (N114.79bn was generated from financing activities in the preceding period).
About the Company
BUA Foods Plc was formed in December 2021, from a consolidation of all food businesses belonging to BUA Group.
The food businesses merged to created BUAFOODS include BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.
BUAFOODS facilities includes 8 ultra-modern factories (Rice/Sugar Refinery/Flour Pasta) and operates 20,000 hectares of arable land located in Lafiagi Kwara.
On Wednesday, 5 January 2022, Bua Foods Plc listed by introduction on the main board of the NGX Exchange Limited. It introduced 18 billion ordinary shares at N40.00.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur