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BUA Foods posts 22.7% profit growth in 2023, despite N81.9 billion FX loss  

Nigeria’s most capitalized consumer goods company, BUA Foods has posted a profit after tax of N112.1 billion, representing a 22.7% increase from the N91.3 billion reported in 2022.

According to the group’s audited financial statement for 2023, it recorded a revenue of N729.4 billion, marking a 74.4% growth from the N418.3 billion posted in 2022.  

The group recorded an impressive financial performance despite a humongous FX loss of N81.9 billion accrued in 2023 due to the devaluations of the Naira.

This is attributable to a significant increase in revenue across various product lines, including bakery flour, fortified sugar, and bran, as well as the introduction of BUA Rice to the market.  

Also, the group recorded a pre-tax profit of N108.1 billion, however, with a deferred tax credit of N4.0 billion, the group’s profit after tax hit N112.1 billion.  

Key Highlights (FY 2023 vs FY 2022)  

  • Revenue: N729.44 billion, +74.4% YoY 
  • Cost of sales: N468.98 billion, +64.2% YoY  
  • Gross profit: N260.46 billion, +96.1% YoY  
  • Selling and distribution expenses: N29.85 billion, +110.4% YoY  
  • Operating profit: N206.32 billion, +75.6% YoY  
  • Net finance costs: N98.18 billion, +1030.9% YoY  
  • Profit before income tax: N108.12 billion, +0.8% YoY  
  • Profit after tax: N112.10 billion, +22.7% YoY  
  • Earnings per share: N6.23, +22.9% YoY  
  • Total assets: N1.07 trillion, +76.3% YoY 

What you should know  

Fortified sugar emerged as the primary revenue driver for the group, with BUA Foods registering N339.7 billion in sales from fortified sugar, marking a remarkable 162.8% increase from the N129.2 billion reported in 2022.  

There was a remarkable surge in revenue made from the sale of bakery flour, as the group made N200.2 billion from bakery flour, marking a 151% growth from the N79.7 billion reported in 2022. BUA Foods also recorded N2.1 billion in revenue from its rice business. Then, 95.5% of the group’s revenue came from sales in Nigeria, a notable increase from the 86% reported in 2022.  

The significant 64% rise in the cost of sales was primarily driven by a substantial 72% rise in the cost of raw materials consumed, with the group spending about N447.6 billion on raw materials in 2023, compared to the N260.2 billion posted in 2022. 

The increase in interest rates throughout 2023 resulted in a significant 157.6% surge in the group’s interest expenses, with an interest expense of N18.6 billion recorded, marking a substantial rise from the N7.2 billion reported in 2022. 


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