BUA Foods gets massive profit as it records earning of N1.07 trillion revenue for September ’24
Abdul Samad Rabiu
BUA Foods Plc, producers of BUA Sugar, BUA Rice, IRS Flour, IRS Pasta, and IRS Semolina, released its unaudited financial results for the nine months ending September 2024, marking an impressive year-on-year performance surge.
For the period, the company reported a 104% growth in revenue to N1.07 trillion, a substantial rise from N524.42 billion recorded in the same period last year. Gross profit increased by 82%, reaching N333.82 billion, up from N183.78 billion in 2023, further consolidating BUA Foods’ position in Nigeria’s food manufacturing sector.
Profit after tax also rose significantly by 91% to N201.38 billion, up from N105.61 billion in the previous year.
A major factor in this growth was the year-on-year increase of 73% in sugar sales, reaching ₦544.4 billion, 160% in flour sales to ₦389.9 billion, and 131% in pasta sales to ₦134.8 billion, reflecting the company’s dedication to generating long-term value for stakeholders.
Operating expenses increased by 56% to ₦43.86 billion, driven by higher selling and distribution costs due to inflationary pressures.
The company’s robust financial performance positions it well to meet its 2025 target of becoming Nigeria’s leading flour and pasta milling firm.
Strategic agreements with Turkish and Italian companies aim to boost pasta production capacity to 900,000 metric tonnes annually and flour production to 2.5 million metric tonnes annually.
BUA Foods’ growth trajectory has earned it several accolades, including the distinction of being the first Nigerian company to win the prestigious Company of the Year award at the 2024 All Africa Business Leaders Awards in partnership with CNBC, held in South Africa.
Recently, it also received awards for Most Valuable Indigenous Food Company of the Year, Customer-centric FMCG Corporate Brand of the Year, and Flour Brand of the Year 2024 for its IRS Premium Wheat Flour.
Commenting on the results, BUA Foods Managing Director Engr. (Dr.) Ayodele Abioye stated: “We are delighted to sustain our remarkable growth trajectory, which underscores our strategic focus, innovative product development, and unwavering commitment to quality, even amid challenging economic conditions.
“Revenue has grown by 104% to N1.07 trillion compared to the same period last year, and our gross profit has reached N333.8 billion, reflecting 82% growth. Our production capacity expansion and product innovation have yielded benefits, evidenced by an 11% growth in aggregate volume, further strengthening our industry position.
“Looking forward, we will remain resolute in addressing food supply challenges by leveraging newly commercialised supply chain assets and partnerships across our divisions. We will focus on internal efficiencies to foster business growth and deliver long-term shareholder value.
“Our thanks go to our stakeholders, particularly our loyal customers and consumers, whose trust in our brand drives our mission to nourish lives.”
