BUA Foods, a unit of Nigerian conglomerate with business interests spread across the food and infrastructure sectors, has reported a profit surge of 30% representing an after-tax profit of 90.4 billion naira (US$195.4 million).
The stellar performance was driven by sales growth that shot revenue of the 2022 fiscal year up 25% to a record N417.8 billion from 333 billion naira (US$723 million) in the previous fiscal year.
According to details of its financial reports, sugar and its derivatives top the list of foodstuffs most marketed by the company, accounting for approximately 65% of turnover (US$595 million), followed by flour and pasta.
Administrative expenses shrank by 22.5 percent as the company reduced general expenses and bank charges, helping to cushion the impact of costs on earnings.
In addition, the increase in turnover made it possible to offset the negative effect linked to the increase in financial costs and tax charges.
Finance income declined by 98.6 percent to 39.9 million from N2.9 billion. Conversely, finance costs advanced to N8.2 billion, reflecting a jump of 61.6 percent. Total assets as of the end of the review year were N612.1 billion compared to N593.5 billion a year earlier.
The food company, which seized the prime spot from Nestlé Nigeria as the country’s biggest consumer goods firm by market value since January 2021, expects to commence the processing, manufacturing, and distribution of edible oils by 2024.
This month, Bua Foods was also admitted into the NGX 30, the equity index that tracks Nigeria’s top 30 public companies in terms of liquidity and market capitalization.
The company has noted that it maintains an ISO 14001:2015 certified Environmental Management System and allocates adequate resources to manage its environment and sustainability commitments.
It is also making necessary efforts to reduce and abate the environmental impacts associated with its operations by continually reviewing and adopting best practices to ensure it meets its environmental commitments.
Such initiatives include the use of alternative energy sources such as natural gas, which is cleaner and therefore reduces our greenhouse gas (GHG) emissions.
Furthermore, the company said its packaging materials are also designed to be recycled. Almost 90% of operational waste products in its sugar, rice, and flour divisions as alternative revenue sources, Bua Foods noted.
