BUA Foods Plc (NGX: BUAFOODS) has reported a 26% year-on-year growth in revenue and a 31% increase in profit after tax for the year ended 31 December 2022 compared to 2021 figures.
Income statement:
Revenue grew by 26% y-o-y to ₦418.3 billion in FY 2022 (FY 2021: ₦333.2 billion). The Sugar division contributed 66% to revenue in FY 2022.
- Sugar Revenue grew by 32% to ₦274.4 billion (FY 2021: ₦209.4 billion).
- The revenue from Flour increased 23.8% to ₦85.9 billion (FY 2021: ₦69.4 billion).
- Pasta revenue rose 5% to ₦57.4 billion (FY 2021: ₦54.4 billion).
The cost of sales increased by 24% to ₦285.6 billion in FY 2022 (FY 2021: ₦230.3 billion). According to the company, the rise 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.
Gross profit increased by 29% to ₦132.8 billion in FY 2022 (FY 2021: ₦103 billion) even as gross profit margin appreciated by 90bps to 32% in FY 2022 (9M 2021: 31%). BUA Foods said the rise was “due to the slight selling price adjustment within the year.”
Selling and distribution expenses increase by 40% to ₦14.2 billion in FY 2022 (FY 2021: ₦10.1 billion) due to huge increase in cost of diesel within the period, while administrative expenses also increased by 28% to ₦18.7 billion in FY 2022 (FY 2021: ₦14.6 billion).
The operating profit grew by 47% to ₦117.5 billion in FY 2022 (FY 2021: ₦79.8 billion) benefitting from top line growth driven by price adjustment and our export sales, according to the company.
Operating profit margin appreciated by 500bps to 28% in FY 2022 (FY 2021: 23%).
Profit before tax increased significantly by 38% to ₦107.2 billion in FY 2022 (FY 2021: ₦77.5 billion). The profit before tax margin stood at 26%. This is the second year in a row with 2021 profit before tax margin at 24%.
Profit after tax grew by 31% to ₦91.3 billion in FY 2022 (FY 2021: ₦69.7 billion). while the Earning per Share (EPS) grew by 20% to N5.07 in FY 2022 from N4.24 in the corresponding period.
The Board of Directors recommends for the approval of shareholders a payment of N4.50k dividend per 50 kobo ordinary share, out of the profits declared in the financial year ended 31 December 2022 (2021: N3.50k dividend per 50 kobo ordinary share). If approved, dividends paid to shareholders will be subject to the deduction of withholding tax at the appropriate rate at the time of payment. The N3.50k dividend per 1 ordinary share of 50 kobo each, declared in 2021, was paid in 2022.
Balance Sheet
Total assets increased by 2.3% to ₦607.2 billion as of FY 2022 (FY 2021: ₦593.5 billion) driven largely by strategic transactions in trade and other receivables which increased by 129% to N119.3 billion.
Total liabilities decline by 4.2% to ₦376.3 billion as of FY 2022 (FY 2021: ₦392.8 billion), mainly due to 10% reduction in borrowings now at ₦207.0 billion (FY 2021: ₦241.2.billion).
Total equity increased by 15.1% to ₦230.9 billion as of FY 2022 (FY 2021: ₦200.7 billion) mainly due to a significant growth of 15.7% in retained earnings to ₦223 billion as of FY 2022 (FY 2021: ₦192.7 billion).
Cash Flow
Net cash of N124.5 billion was generated from operating activities in 2022 up from N871.7 million generated in 2021.
Net cash of N15.4 billion was used in investing activities in 2022, lower than N104.4 billion used in 2021.
Net cash of N108.8 billion was used in financing activities in 2022 against N114.8 billion generated in 2021. This was mainly driven by N310.41 billion repayment of borrowing (FY 2021: N153.1 billion). Also N63 billion was paid as dividend in 2022 FY while no dividend was paid in 2021 FY.
The share price of BUA Foods closed flat at N102 per share on Wednesday on the Nigerian Exchange. Year-to-date it is up 42.66%
About BUA Foods Plc
BUA Foods Plc (NGX: BUAFOODS) is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The Company owns strategically located plants across Nigeria, in addition to a cordial alliance with local stakeholders in host communities. Additionally, BUA Foods is a resilient business built on a strong brand proposition and is an operator that has a well-known reputation for delivering high-quality products.
BUA Foods continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain. The Company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.
Headquartered and listed in Nigeria, BUA Foods is one of the most capitalized companies on the NGX Exchange and a leading consumer goods firm by market value.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
