Despite the numerous political and economic headwinds impacts experienced in the year, BUA Foods Plc sustained her leadership position in the Foods with a Profit After Tax (PAT) of N105.6 billion for the nine months period ended in September 2023.
The amount represents a growth of 54 per cent against N68.8 reported the same period of last year.
The company revenue grew by 81 per cent y-o-y to N524.4 billion at the end of September this year from N289.8 billion reported at the corresponding period of 2022.
The growth in revenue according to the company was due to a year-on-year increase of 74.2 per cent in Sugar to N315.2 billion from N180.9 billion reported in 2022, a 126 per cent increase in Flour to N149.9 billion against N66.2 billion in the preceding year and 37 per cent growth in Pasta to N58.3 billion from N42.7 billion in the comparative period of last year.
According to the company result, new division Rice business contributed N995 million to the top line during the same period, adding that across the business divisions there was significant growth in volume sold impacting the overall performance as well.
The key drivers include slight price adjustments to reflect high input costs, volume growth and gradual commissioning of its expansion projects.
The increase in cost of sales added 74.1 per cent to N340.6 billion in the third quarter from 195.6 billion in 2022 and was driven by an increase in raw materials cost and energy cost.
The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in higher cost of production.
Gross profit increased by 95.1 per cent to N183.8 billion in nine month in year 2023 against N94.2 billion in the same period of last year even as gross profit margin appreciated by 250bps to 35.0 per cent within the reviewed period against 32.5 per cent recorded in the preceding year due to the slight selling price adjustment and new market penetration for sales within the year.
