BUA Foods Records 38% Revenue Growth in Nigeria

In the year ending June, 2024, BUA Foods, as seen in the Nigerian newspaper, The Punch, recorded a 38% growth in its revenue, amounting to N130bn. This is up from N95.18bn in the same period the year prior.

The profit was seen in its financial results for the half-year filed with the Nigerian Exchange Limited.

BUA Foods’s Managing Director, Ayodele Abioye, stated “The first half of the year has been one of significant resilience and achievements for our company. We attained a robust financial performance, with total revenue increasing by 110 per cent to N672.3bn compared to the same period last year.

Our gross profit stands at N218.4bn, reflecting a growth of 64 per cent. 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.

The report also indicated that the growth was a result of the year-on-year increase of 88% in sugar sales to N369.7 billion from N196.5 billion in H1 2023, 164% in flour sales to N227.9 billion from N86.05 billion in H1 2023, and 95% in pasta sales to N74.03 billion from N37.9 billion in the first half of 2023.

However, BUA Foods contended with growing costs, as the cost of sales rose by 141% to N453.9 billion. In spite of this, BUA Foods was able to grow its asset base, as seen by the 3.3% increase in total assets to N1.11tn.

“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,” Ayodele Abioye said.

“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,” the Managing director added.

A similar report was given in February, despite the common challenge. At the time, BUA Foods recorded a 74% growth in its overall income to ₦728 billion from the previous year. The group has ensured an annual growth rate of 30% since 2021, thanks to an increase in its production capacity.

Even before the food crisis caused by the removal of fuel subsidies in May of last year, BUA Foods had established itself as a food company that helps ensure Nigeria’s food security while also satisfying the country’s demands.