Key Highlights
- BUA Foods reported a Profit Before Tax growth of 38% to N107.2 billion for the full year 2022 from N77.5 billion posted in 2021.
- Revenue grew by 26% y-o-y to N418.3 billion in FY 2022 from FY 2021’s N333.2 billion.
- Cost of sales grew by +24% to N285.6 billion in FY 2022 from N230.3 billion reported in 2021
BUA Foods Plc, Foods, and FMCG Company, listed on the NGX have released its audited consolidated and separate financial statement for the period year ended 2022.
The report shows that the company reported a Profit Before Tax growth of 38% to N107.2 billion for the full year 2022 from N77.5 billion posted in 2021.
This is on the back of increasing inflation which the economy continues to battle. The latest report released by the Nigerian Bureau of Statistics (NBS) has revealed that the inflation rate in Nigeria soared to a staggering 21.91% in February.
This marks a substantial increase from the inflation rate of 21.82% recorded in the previous month of January.
The report showed that the February 2023 headline inflation rate increased by 0.09% points compared to the January 2023 headline inflation rate.
All other performance indicators are also on an upswing as earnings per share increased by 20% from the previous year. Additionally, profit after tax surged to N91.3 billion representing an increase of 31% from N69.7 billion posted for the same period in 2021.
Revenue grew by 26% y-o-y to N418.3 billion in FY 2022 from FY 2021’s N333.2 billion. This was due to a y-o-y increase of 32% in Sugar to N274.4 billion (FY 2021: N209.4 billion), 23.8% in Flour to N85.9 billion (FY 2021: N69.4 billion), and 5% in Pasta to N57.4 billion (FY 2021: N54.4 billion).
The increase in the cost of sales (+24%) to N285.6 billion in FY 2022 (FY 2021: N230.3 billion) was driven by an increase in raw materials cost and energy costs. 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 a higher cost of production.
Gross profit increased by 29% to N132.8 billion in FY 2022 (FY 2021: N103 billion) even as gross profit margin appreciated by 90bps to 32% in FY 2022 (9M 2021: 31%) due to the slight selling price adjustment within the year. Selling and distribution expenses increased by 40% to N14.2 billion in FY 2022 (FY 2021: N10.1 billion) due to a huge increase in the cost of diesel within the period. Administrative expenses also increased by 28% to N18.7 billion in FY 2022 (FY 2021: N14.6 billion) driven majorly by the increase in general expenses (132.5%) to N5.4 billion in FY 2022 (FY 2021: N2.3 billion) and travel and other transportation fees.
Revenue
- 2022 FY: N418.3 billion
- 2021 FY: N333.2 billion
- Change: +26%
Gross Profit
- 2022 FY: N132.8 billion
- 2021 FY: N103 billion
- Change: +29%
Cost of sales
- 2022 FY: N285.6 billion
- 2021 FY: N230.3 billion
- Change: +24%
Pre-tax profit
- 2022 FY: N107.2 billion
- 2021 FY: N77.5 billion
- Change-+38%
Net Profit after tax
- 2022 FY: N91.3 billion
- 2021 FY: N69.7 billion
- Change-+31%
What the company said
Commenting on the results, Engr. Ayodele Abioye, the Managing Director, said BUA Foods Plc continued to be the most profitable Foods and FMCG listed company in Nigeria with PBT of N107.2 Billion, a growth of 38% on the prior year.
“This is despite the unending disruption of the business climate with high input costs, and currency devaluation resulting in increased operational costs. We remain resolute to navigate the numerous business headwinds to continue delivering double-digit growth with a sustained focus on our market expansion strategy across our business segments. Delivering long-term values to all our stakeholders as we continue to nourish lives remains cardinal”.
