BUA Foods Plc reported a notable rise in revenue that drove profit and most likely affected the return to shareholders despite macroeconomic constraints.
According to ThisDay, the company hasn’t disclosed a dividend payment to shareholders yet.
In its unaudited result and account for the full year ended December 31, 2023, the food company, which produces sugar, wheat, pasta, rice and edible oils—declared the top-bottom line remarkable performance, reflecting efficient management and cost containment. The firm is well-diversified and scalable.
The corporation generated revenue of N728.5 billion for the time under review, up 74% from the N418.3 billion reported in the 2022 financial year.
The climate of high input costs and the Naira’s continued depreciation versus the US dollar significantly affected raw material pricing. The cost of production increased as a result.
Due to a little selling price adjustment made throughout the year, BUA Foods’ gross profit margin grew by 280 basis points to 34.5 percent in 2023 from 31.7 percent in 2022, representing an 89 percent rise in gross profit from N132.79 billion.
In 2023, total operating expenses amounted to N39.7 billion, up 20% from N32.9 billion in 2022. This rise was primarily caused by higher costs associated with selling and distributing goods to clients along the supply chain.
Operating profit for BUA Foods was N213.2 billion in 2023, up 82% from N117.44 billion in 2022. Top line growth was fueled by pricing adjustments and volume increases as a result of IRS capacity development.
It increases the operational profit margin of BUA Foods from 28% in 2022 to 29% in 2023.
The entire assets of BUA Foods were broken down as follows: total non-current assets rose from N330.55 billion in 2022 to N358.9 billion in 2023, while total current assets decreased from N276.67 billion in 2022 to N375.19 billion in 2023.
As of December 31, 2023, the Group’s total liabilities grew by 25% to N472.5 billion from N376.2 billion as reported in the 2022 fiscal year.
Due primarily to a notable 13% rise in retained profits, which reached N253.4 billion as of December 31, 2023 (FY 2022: N222.9 billion), total equity climbed to N261.4 billion as of December 31, 2023 from N376.2 billion in 2022.
In the midst of noteworthy unaudited results and full year financial statements ending December 31, 2023, BUA Foods’ stock price has steadily increased, closing February 25, 2024 at N379.9 per share.
