BUA Foods Plc has released its full year 2023 financial result posting a profit after tax of N111.536 billion amidst economic headwinds.
This was contained in the group’s financial statement released to the Nigerian Exchange Limited and seen by Nairametrics.
The group’s profit after tax grew by 22% to N111.536 billion from N91.344 billion reported in 2022.
BUA Foods also posted a pre-tax profit of N120.831 billion, representing a 12.69.3% increase from the N107.229 billion posted in FY 2022.
This is on the back of increasing inflation which the economy continues to struggle with.
Nigeria’s inflation rate for December rose to 28.92% from 28.20% recorded in the previous month according to the latest National Bureau of Statistics (NBS) inflation report.
The increase marks the eleventh consecutive increase in the inflation rate from February 2023.
The headline inflation rate for December 2023 experienced a rise of 0.72% points in comparison to the November 2023 headline inflation rate.
When compared to December 2022, which had a headline inflation rate of 21.34%, the year-on-year basis for December 2023 saw a substantial increase of 7.58% points, indicating a rise in the headline inflation rate during the same month of the previous year.
Additionally, on the month-on-month comparison, the headline inflation rate for December 2023 reached 2.29%, surpassing November 2023’s rate of 2.09% by 0.20%.
This signifies that the average price level increased at a higher rate in December 2023 compared to the preceding month, November 2023.
The group’s revenue rose to N728.447 billion, representing a 74.13% increase from the N418.347 billion posted in FY 2022.
The group’s cost of sales grew to N477.147 billion in FY 2023, up by 67.09% from the N285.555 billion recorded in FY 2022.
Key Highlights FY 2023 (FY 2022, % Change)
- Revenue: N728.447 billion (N418.347 billion, +74.13%)
- Cost of sales: N477.147 billion (N285.555 billion, +43.9%)
- Gross profit: N251.329 billion (N132.792 billion, +89.27%)
- Profit before tax: N120.831 billion (N107.229 billion, +12.69%)
- Profit for the period: N111.536 billion (N91.344 billion, +22%)
- Earnings per share: N6.20 (N5.07, +22.29%)
- Total Assets: N734.071 billion (N607.224 billion, +20.89%)
What you should know
The key driver of the group’s revenue in the 2023 financial year emanated from the sale of fortified sugar products, accounting for N327.545 billion as against N129.242 reported in 2022 representing a growth of 153.44%. The segment contributed to 44.96% of the total revenue of N728.447 billion.
Also, sales of bakery flour followed with N200.361 billion a notable surge of 151.43% compared to the N79.687 billion generated by the segment in the previous year, 2022. The segment also contributed 27.50% of the total revenue achieved by the group.
