BUA Foods Plc, makers of BUA Sugar, BUA Rice, IRS Flour, IRS Pasta, and IRS Semolina, has released its unaudited financial results for the nine months ended September 2024, marking a year-on-year performance leap.
The company’s revenue for the nine-month period grew by 104% to N1.07 Trillion, a significant jump from the N524.42 billion reported in the same period last year. Gross profit surged by 82%, hitting N333.82 billion compared to N183.78 billion in 9M of 2023, further consolidating the company’s standing in Nigeria’s food manufacturing industry. Its profit after tax increased by 91% to hit N201.38 billion, rising from N105.61 billion during the comparable period, last year.
A key driver of this performance was a year-on-year increase of 73 percent in sugar sales to ₦544.4 billion, 160 percent in flour sales to ₦389.9 billion, and 131 percent in pasta sales to ₦134.8 billion reflecting the company’s commitment to creating long-term value for all stakeholders.
Operating expenses saw a 56% increase to ₦43.86 billion on the back of a rise in selling and distribution costs due to inflation.
The company’s strong financial performance positions the company to achieve one of its 2025 goals of becoming Nigeria’s biggest flour, and pasta milling company after signing strategic agreements with Turkish and Italian firms to increase its pasta production capacity to 900, 000 metric tonnes per annum and flour to 2.5 million metric tonnes per annum.
This impressive growth trajectory has been recognised with numerous accolades. Just last week, it emerged as the first Nigerian company to be honoured with the prestigious Company of the Year award at the 2024 All Africa Business Leaders Awards in partnership with CNBC in South Africa. Additionally, the company recently received the Most Valuable Indigenous Food Company of the Year award, the Customer-centric FMCG Corporate Brand of the Year award, while its IRS Premium Wheat Flour was named Flour Brand of the Year 2024.
Commenting on the results, the Managing Director of BUA Foods, Engr. (Dr.) Ayodele Abioye, said:
“We are thrilled to have sustained a remarkable growth trajectory, underscoring the impact of our strategy, innovative product development, and steadfast commitment to quality, even in the face of a challenging business climate”.
“Revenue grew by 104% to N1.07 Trillion compared to the same period last year, while our gross profit stands at N333.8 billion, reflecting a growth of 82%. We saw the benefits of our production capacity expansion and product innovation, as we witnessed an 11% growth in aggregate volume which has further strengthened our position within the industry”.
“Looking ahead, we will remain steadfast in addressing current food supply challenges by leveraging newly commercialised supply chain assets and partnerships across our business divisions. We would maintain a focus on driving internal efficiencies for business growth towards delivering long-term shareholder value.
We thank our stakeholders, particularly our customers, and consumers for their love for the brand even as we continue to nourish lives”.
About BUA Foods
BUA Foods Plc is a leading food business with well-diversified and scalable operations producing sugar, flour, pasta, rice, and edible oils. Food security is the most important mission at the heart of the company existence. It shapes the Company’s strategic direction and operational ethos towards fulfilling Africa’s food demands and improving the well-being of individuals and communities.
It owns strategically located plants across Nigeria and a cordial alliance with local stakeholders in host communities. Additionally, the company is a resilient business built on a strong brand proposition and an operator with a well-known reputation for delivering high-quality products.
It continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain.
