NIGERIA – Nigeria’s fast-moving consumer goods company, BUA Foods, has reported a significant surge in its after-tax profit for the year-end 2023, reaching US$89.23 million.

This marks a substantial increase from US$73.07 million recorded in the previous year, according to the company’s recently unaudited financial statement.

The company also witnessed a remarkable 74% increase in revenue, reaching US$582.78 million compared to US$334.68 million in 2022.

A detailed breakdown of the revenue indicates a 53% increase in sugar earnings, reaching US$337.2 million, a remarkable 152% rise in flour sales to US$173.52 million, and a 54% increase in pasta sales, reaching US$70.32 million.

Ayodele Abioye, the Managing Director of BUA Foods, expressed satisfaction with the company’s robust performance in the face of challenging macroeconomic conditions. Despite the persistent devaluation of the naira, the company managed to deliver strong growth.

“BUA Foods delivered strong growth despite the persistent devaluation of the naira during the period, which led to a substantial and negative impact of foreign exchange losses,” Abioye stated.

However, the cost of sales witnessed a 67% increase to US$381.712 million in 2023, primarily driven by rising raw material and energy costs.

Abioye explained that the increase was influenced by higher costs of raw materials and energy, attributed to the challenging input cost environment and the devaluation of the naira against the US dollar.

Operating expenses also experienced a 20.7% increase to US$31.78 billion, primarily due to rising selling and distribution expenses along the supply chain to customers.

Other income declined by 89%, reaching US$1.352 billion in 2023, attributed to a drop in sundry income.

In 2023, BUA Foods reported no finance income, in contrast to US$31.776 million in 2022. Finance costs surged by 116% to US$15.112 billion, and a foreign exchange loss of US$58.848 billion was recorded.

Total assets for the company increased by 21%, reaching US$587.256 billion. BUA Foods showcased a robust cash flow, with net cash from operating activities increasing to US$213.6 billion, compared to US$99.576 billion.

Net cash used in investing activities recorded a negative amount of US$30.704 billion, while net cash from financing activities had a negative value of US$138.864 billion.

Despite uncertainties in the business climate, Abioye expressed confidence in the company’s plans for 2024, emphasizing the commitment to creating long-term value for stakeholders and adhering to their mission of nourishing lives.


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