BUA Foods Plc (NGX: BUAFOODS) grew its revenue to N524.4 billion in the nine months period ended 30 September 2023 and its profit to N105.62 billion according to the financial statements released by the company.
Revenue grew by 81% y-o-y to ₦524.4 billion in 9M 2023 (9M 2022: ₦289.8 billion). The company said the revenue growth was due to a y-o-y increase of 74.2% in Sugar to ₦315.2 billion (9M 2022: ₦180.9 billion), 126% in Flour to ₦149.9 billion (9M 2022: ₦66.2 billion), and 37% in Pasta to ₦58.3 billion (9M 2022: ₦42.7 billion).
The Sugar division contributed 60% to revenue in 9M 2023 (9M 2022: 64%). Sugar Revenue grew by 74% to ₦315.1 billion in 9M 2023 (9M 2022: ₦180.9 billion). The company said the increase was due to “sales volume growth, price adjustments and export sales within the period.”
The Flour division contributed 29% to revenue in 9M 2023 (9M 2022: 22%). Revenue increased significantly by 126% to ₦149.9 billion in 9M 2023 (9M 2022: ₦66.2 billion).
The Pasta division contributed 11% to revenue in 9M 2023 (9M 2022: 17.6%). Revenue increased by 37% to ₦58.3 billion in 9M 2023 (9M 2022 ₦42.7 billion).
The company’s new division, rice business contributed 0.3% or ₦995 million to the revenue in 9M 2023. The company the “potential looks good in the coming quarters.”
The cost of sales however, rose by 74.1% to ₦340.6 billion in 9M 2023 (9M 2022: ₦195.6 billion). This rise company said 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 for raw materials. This resulted in higher cost of production”
The gross profit increased by 95.1% to ₦183.8 billion in 9M 2023 (9M 2022: ₦94.2 billion) even as gross profit margin appreciated by 250bps to 35.0% in 9M 2023 (9M 2022: 32.5%) due “to the slight selling price adjustment and new market penetration for sales within the year.”
The company’s administrative expenses increased by 76.3% to ₦7.9 billion in 9M 2023 (9M 2022: ₦4.5 billion) driven majorly by the increase in general expenses (41.1%) to ₦1.2 billion in 9M 2023 (9M 2022: ₦885 million). Others key highlights includes Bank Charges valued at ₦1.28 billion.
Profit before tax increased significantly by 50% to ₦111.4 billion in 9M 2023 (9M 2022: ₦74.2 billion) while sustaining her double digit in profit before tax margin at 21.2% (9M 2022: 25.6%).
Profit after tax grew by 53.6% to ₦105.6 billion in 9M 2023 (9M 2022: ₦68.8 billion). while the Earning per Share (EPS) grew by 53.6% to N5.87 in 9M 2023 from N3.82 in the corresponding period.
Balance sheet
Total assets increased by 24.8% to ₦757.8 billion as of 9M 2023 (FY 2022: ₦607.2 billion) driven largely by growth in trade and other receivables of ₦215.6 billion from ₦119.3 billion representing 72.3% at FY 2022.
Total liabilities increase by 33.5% to ₦502.3 billion as of 9M 2023 (FY 2022: ₦376.2 billion). This was driven mainly by a surge in other current liabilities of 133.3% to ₦109.9 billion from ₦47.1 billion in FY 2022.
Total equity increased by 10.7% to ₦255.6 billion as of 9M 2023 (FY 2022: ₦230.9 billion) mainly due to a double-digit growth of 11% in retained earnings to ₦247.5 billion as of 9M 2023 (FY 2022: ₦222.9 billion).
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
