BUA Foods has recorded 38% profit after tax despite the rising cost of production and the seemingly unpredictable business climate.
According to its financial report for June 2024, BUA foods recorded N130 billion profit after tax, a major leap from the 95.18 billion it posted during the same period in 2023.
This growth came amid major economic turmoil triggered by policies of government especially the devaluation of the naira and unification of exchange rate. This policy had spiked cost of production creating an unfriendly business climate for manufacturers, some of whom had decided to downsize or close shops totally.
The BUA Foods financial report, which was filed with the Nigerian Exchange Limited, indicated that the company’s total revenue rose by 110% to N672.3 billion against the N320.9 billion that was recorded in 2023. This growth, analysts say, was driven by the company’s strong performance in its pasta, flour and sugar divisions.
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Sugar sales grew by 88% to N369.7 billion, sale of flour rose by 164% to 227.9 billion while pasta rose by 95% to N74.03 billion.
With this growth, BUA foods was able to expand its asset base by 3.3%, increasing it to N1.11 trillion. This suggests that the company is very much on track to better its revenue in the previous year by a good margin if it sustains this growth in the second half of the year.
Based on this, BUA foods remains the most valuable company in Nigeria’s consumer goods sector considering its market value and capitalization. BUA foods share price has risen by 685% since it was listed in January 2022. In fact, in 2023, BUA foods stock gained 198%. So far this year, it has appreciated by 96.43%, becoming the best performing fast consumer goods stock on the NGX
