BUA Foods records N130bn profit after tax in H1 | Reports N54.6bn FX loss

BUA Foods Plc, a subsidiary of BUA Group, says its profit after tax (PAT) surged to N130.93 billion in the first half (H1) of 2024.

This represents a 38 percent increase compared to the N95.18 billion recorded in the same period in 2023.

In its half-year financial results for 2024 filed on the Nigerian Exchange Limited (NGX), the company said despite the difficult business environment and macroeconomic headwinds, it recorded N672 billion as revenue in the period examined.

This is higher by 110 percent or N320 billion recorded in H1 last year 2023.

BUA Foods’ also said its gross profit increased by 64 percent to N218.4 billion — “driven by increased sales across its product lines such as flour, sugar, and pasta divisions”.

The firm said it recorded an operating profit of N202 billion, marking an improved operational efficiency of 75 percent.

However, the manufacturer said it incurred a N54.6 billion foreign exchange (FX) loss in H1 2024.

Commenting on the company’s six-month performance, Ayodele Abioye, managing director, said the first half of the year has been “one of significant resilience and achievements for our company”.

“This solid performance is a testament to the efficacy of our strategic initiatives, operational efficiency, and unwavering dedication of our board, management, and other members of staff,” Abioye said.

“During this period, we have made significant strides in executing our strategic plans, successfully launching new products, specifically, macaroni, premium pasta and semolina to meet the yearnings of our customers.

“Our diversified portfolio and expansion into new markets impacted revenue growth while strengthening our partnership with key stakeholders.

“We also maintained a strong focus on cost optimization, resulting in sustained margins and profitability.

“Looking ahead, we remain confident in our ability to navigate the challenges and opportunities in the market.”

Abioye said the company will continue to leverage “a strong and orchestrated” supply chain system to deliver “a great financial performance” in line with the firm’s strategic vision for sustainable growth and value creation for all stakeholders.