BUA Foods reports strong growth in 2024

NIGERIA – BUA Foods Plc has posted impressive financial results for the 2024 fiscal year, with revenue more than doubling due to strong consumer demand and strategic price adjustments.

The company’s revenue surged by 109% to US$1.23 billion, driven by strong performance across key product categories. 

Sales of bakery flour led the way with a 172% increase, followed by pasta (125%), non-fortified sugar (101%), and fortified sugar (67%).

Rising costs and foreign exchange losses

Despite the significant revenue growth, BUA Foods also faced rising costs. The cost of sales jumped by 110% to US$658 million due to increased raw material and energy expenses. 

The company also recorded a foreign exchange loss of US$126 million, along with finance costs of US$7.65 million and administrative and selling expenses totaling US$40.15 million.

Even with these cost pressures, BUA Foods achieved remarkable profit growth. Pre-tax profit rose by 167% to US$193.1 million, while profit after tax increased by 145% to US$183.6 million. 

The company’s profitability ratios improved, with a net profit margin of 18% and a return on equity of 62.8%, reflecting efficient resource management.

Strong stock market performance

BUA Foods’ stock performed well throughout 2024. It started the year at US$0.13 per share and climbed to US$0.29 by the end of February. 

After stabilizing for several months, the share price resumed its upward trend in September, closing the year at US$0.26 per share—delivering an overall return of 104%.

In the final quarter of 2024, the company’s pre-tax profit soared by 288% to US$49 million. Quarterly revenue reached US$292.2 million, up 114% from the same period in 2023.