BUA Foods Plc reported a pre-tax profit of N73.4 billion for the fourth quarter of 2024 in its latest financial report released on the Nigerian Exchange (NGX) on January 30, 2025.
This represents a 288.04% increase from N18.9 billion in the same quarter last year, while the full-year pre-tax profit reached N289 billion, up 167.35% from N108.1 billion in 2023.
Revenue for the fourth quarter of 2024 reached N437.4 billion, representing a notable increase of 114.38% compared to N204 billion recorded in the same quarter of the previous year.
Total revenue for the year soared to N1.5 trillion, marking a 109.29% increase from N729.4 billion in FY 2023, primarily fueled by robust sales of fortified sugar, bakery flour, and other food products.
Key Highlights (2024 vs. 2023)
- Turnover: N1.5 trillion, +109.29% YoY
- Cost of sales: N984.9 billion, +110.02% YoY
- Gross profit: N541.7 billion, +107.98% YoY
- Administrative expenses: N20.2 billion, +17.83% YoY
- Selling and distribution expenses: N39.8 billion, +33.43% YoY
- Other Income: N7.5 billion, +837.97% YoY
- Operating profit: N489.1 billion, +137.11% YoY
- Finance Income: N10.1 billion, +308.33% YoY
- Finance cost: N21.6 billion, +15.05% YoY
- Foreign Exchange loss: N188.6 billion, +130.47% YoY
- Pre-tax profit: N289 billion, +167.35% YoY
Commentary
BUA Foods reported a turnover of N1.5 trillion for the full year of 2024, showing a 109.29% year-on-year increase from N729.4 billion in 2023.
- Fortified Sugar sales were N567.3 billion, contributing 37.19% to total revenue, while Bakery Flour accounted for N544.8 billion, or 35.69%.
- Pasta sales made up 12.92%, Non-Fortified Sugar accounted for 10.83%, with other food products comprising the remainder.
The cost of sales rose sharply to N984.9 billion in FY 2024, reflecting a 110.02% increase from N468.9 billion in FY 2023, with raw material costs constituting 92.89% of this total.
Despite the rise in costs, gross profit increased by 107.98% year-on-year to N541.7 billion, up from N260.4 billion in 2023.
- Administrative expenses also grew, reaching N20.2 billion, a 17.83% increase from N17.2 billion the previous year, driven by salaries, wages, & benefits; general expenses, maintenance, and legal services.
- Selling and distribution expenses rose by 33.43% to N39.8 billion, compared to N29.8 billion in the prior year.
Other income increased by 837.97% to N7.5 billion, up from N809.3 million in the previous year, with sundry income making up 85.15% of this total.
Finance income rose by 308.33% year-on-year to N10.1 billion, but finance costs also increased by 15.05% to N21.6 billion, up from N18.8 billion.
- Foreign exchange losses spiked by 130.47%, climbing from N81.8 billion in 2023 to N188.6 billion.
Despite these challenges, pre-tax profit grew by 167.35% year-on-year from N108.1 billion to N289 billion for the full year of 2024.
Asset position
Total assets experienced a slight decline of 1.27%, decreasing from N1.07 trillion in the previous year to N1.05 trillion in 2024.
- However, non-current assets increased from N358 billion to N379.3 billion for the full year, with property, plant, and equipment accounting for an impressive 99.97% of this total.
In contrast, total current assets fell to N677.5 billion, down from N712.4 billion reported in 2023.
- Notably, debts due from related companies amounted to N469.9 billion, while inventories contributed N105.3 billion, together comprising a significant portion of total current assets.
