BUA Foods reported its 2023 second-quarter results showing pre-tax profits grew by 289.61% year on year, reaching N61.81 billion.
This took half-year pre-tax profits to N109.38 billion versus N42.702 billion in the same period last year.
Key highlights Q2 2023 vs Q2 2022
- Revenue N176.61 billion +124% YoY
- Cost of sales N102.1 billion +78.02% YoY
- Gross Profit N74.512 billion +247.31% YoY
- Administrative expenses N2.386 billion +108.40% YoY
- Selling and Distribution expenses N6.556 billion +162.92% YoY
- Operating income N66.065 billion+260.63% YoY
- Finance cost N4.171 billion +69.83% YoY
- Profit for the year N54.714 billion +286.21% YoY
- Earnings per share N3.04 +284.81% YoY
- Cash and cash equivalent N68.438 billion +112.78%.
- Total Assets N757.922 billion +24.82%
Insights:
BUA Foods’s growth in operating profit was primarily driven by substantial growth in revenue.
A distinguishing feature of BUA’s performance compared to most consumer goods sector companies was the absence of any recorded foreign exchange losses during the review period.
Unlike its counterparts in the industry, BUA Foods did not incur any negative impacts from foreign exchange fluctuations
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This is the advantage of backward integration and the promotion of local entrepreneurship. Imagine a nestle with over 80pct.foreign.interest.with intercompany loans that must be serviced. The heavy dose of foreign interest and reliance on foreign input will be injurious to it’s bottomline