The Sugar division contributed 48 per cent to BUA Foods’s revenue in full year 2024 according to the company’s earnings release.
Nigeria’s food inflation rate hit 39.84 per cent in December 2024, a 5.91 per cent increase from the 39.93 per cent recorded in December 2023, according to the latest report by the National Bureau of Statistics (NBS).
The company’s Sugar revenue grew by 74 per cent to N733.8bn in full year 2024 from N422.8bn reported in 2023. The increase in revenue according to the company was due majorly to price adjustments within the period.
However, volume sold declined by 12 per to 556,396 tons within the period from 635,519 tons reported in 2023.
The Flour division followed with a contribution of 39 per cent to revenue in the review period of 2024 from 30 per cent posted in 2023. Revenue increased by 172 per cent to N589.5bn in 2024 as against N216.7bn reported a year earlier.
The growth in revenue was due to both volume increase and price adjustment within the period. Contribution margin also increased to 38 per cent from 30 per cent for the same period last year due to higher selling price.
The Pasta division accounted for 13 per cent to revenue in full year 2024 from 12 per cent recorded in 2023.
Revenue increased by 125 per cent to N197.6bn in full year of 2024 from N87.8bn in 2023. The increase in sales volume according to the company recorded was due to high demand for our pasta products within the period under review.
There was also a 24 per cent increase in production volume to 160,867 tons in FY 2024 from 129,276 tons in 2023.
According to the company, the Rice division, scaled up its operation during the year. A total of N5.79bn was generated from its operations, up by 183 per cent in 2024 from 2023 which was N2.04bn.
The company noted that the challenges in the paddy supply chain for rice production has been an hinderance. However, it said that it put in place a new paddy supply and procurement strategy which will positively bolster the performance of the Rice Division and optimize operations in 2025.
BUA Foods’ total revenue grew by 109.3 per cent year-on-year to N1.53trn in 2024 from N729.44bn the previous year.
According to the company, the growth was due to a year-on-year increase of 74 per cent in Sugar to N733.8bn from N422.8bn, 172 per cent in Flour to N589.5bn from N216.7bn, and 125 per cent in Pasta to N197.6bn from N87.8bn.
However, cost of sales increased by 110 per cent to N984.98bn in 2024 from N468.98bn the previous year driven primarily by an increase in raw materials and energy cost. The continued devaluation of the Naira against the US Dollar significantly impacted raw material prices, leading to increased production costs.
Commenting on the results, the Managing Director, Engr. Ayodele Abioye, said the results underscored the company’s ability to navigate challenges with agility and its resilience, as it continues to create value for all stakeholders.
“We are delighted to report an exceptional performance in FY 2024. Despite significant macroeconomic challenges, our business navigated the resulting impact on supply chain costs and foreign exchange losses effectively”.
“The cumulative impact of our expansion strategy has enabled our capability to fulfil increased demand from our customers and enhanced internal operational efficiencies. BUA Foods achieved an aggregate volume growth of 18 per cent across all divisions. We hit a milestone revenue of ₦1.53 trillion, reflecting a 109 per cent growth, while profit after tax surged by 145 per cent to N274.95bn. This performance has further reinforced our market position and industry leadership”.
“Looking ahead with optimism, coupled with stability in the macro-economic environment, we would continue to focus our operations and strategic investment initiatives towards addressing food supply challenges. Also, with the concerted efforts of our board, management and frontline associates, we aim to deliver a strong performance with sustained value creation for all stakeholders in line with our north-star objectives.”
