BUA FOODS PLC BUA Foods begins the year with strong Growth
Revenue increase of 147% to N356 Billion
Gross Profit up by 103% to N115 Billion
Lagos, 31st March 2024 - BUA Foods Plc ("BUA Foods", or "the Company") announced its results for the unaudited 3M financial for the period ended 31 March 2024.
Key Financial Highlights
Group | % Change | |||
In thousands of naira | 3M 2024 | 3M 2023 | Δ | |
Revenue | 356,921,621 | 144,318,353 | 147% | |
Cost of Sales | 241,503,540 | 87,660,700 | 175% | |
Gross Profit | 115,418,081 | 56,657,653 | 103% | |
Gross Margin (%) | 32.3% | 39.2% | -700bps | |
Selling and distribution expenses | (9,777,158) | (6,285,143) | 56% | |
Administrative expenses | (4,590,223) | (2,617,951) | 75% | |
Total operating expenses | (14,367,381) | (8,903,094) | 61% | |
Other income | 3,668,335 | 401,952 | 813% | |
Operating Profit | 104,719,036 | 48,156,512 | 117% | |
Opex to Income margin | 4% | 6.16% | -216bps | |
Operating profit margin | 29.3% | 33.3% | -400bps | |
Finance cost - net | (15,071,541) | (2,129,854) | 608% | |
Foreign Exchange (Gain) Loss | (27,285,469) | - | - | |
Profit before income tax | 62,362,026 | 45,945,252 | 36% | |
PBT Margin (%) | 17.4% | 31.8% | -1440bps | |
Income Taxes | 6,539,429 | 5,476,303 | 19% | |
Profit for the period | 55,822,597 | 40,468,949 | 38% | |
Earnings Per share (Kobo) | 3.10 | 2.25 | 38% | |
Return on Equity (%) | 17.5% | 15.4% | 210bps | |
Return on Assets (%) | 5.15% | 3.78% | 137bps | |
Total assets | 1,082,505,390 | 1,070,439,862 | 1% | |
Total equity | 317,881,430 | 262,058,833 | 21% | |
Total liabilities | 764,623,960 | 808,381,029 | -5% | |
Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said:
"Our top and bottom line witnessed significant uptick facilitated by a mix of volume and pricing actions. Aggregated sales maintained its upward trajectory as our capacity expansion drive continues to yield notable gains.
Despite elevated input & output cost pressures as well as increased FX volatility, our first quarter results further re-iterated the resilience of our business model and dynamism of our market approach. Revenue leaped by 147% while PBT increased by 36% to N62 Billion. Net Profit was up 38% at N55Billion further re-affirming our position as the most profitable food business on the exchange.
During the quarter, we expanded our product bouquet in a bid to penetrate new markets and fulfil the demands of our customers and consumers.
We continue to prioritize research and development with a view to innovating and leading as we grow with our customers. Focus would be on implementing our strategic initiatives which includes new market penetration, product and market development, platform strategy orchestration and supply chain integration all with the aim of contributing to nation building and staying true to our creed of nourishing lives".
Key Highlights of Group performance and financial review of 3M unaudited.
Revenue grew by 147% q-o-q to ₦356.9 billion in 3M 2024 (3M 2023: ₦144.3 billion). This was due
to a q-o-q increase of 155% in Sugar to ₦238.2 billion (3M 2023: ₦93.2 billion), 158% in Flour to
₦80.9 billion (3M 2023: ₦31.3 billion), and 91% in Pasta to ₦37.07 billion (3M 2023: ₦19.4 billion).
Increase in cost of sales (+175%) to ₦241.50 billion in 3M 2024 (3M 2023: ₦87.66 billion) was driven by an increase in raw materials cost and energy cost. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices of raw materials. This resulted ni higher cost of production.
Gross profit increased by 103% to ₦115.418 billion in 3M 2024 (3M 2023: ₦56.657 billion) However,
gross profit margin depreciated by 700bps to 32.3% in 3M 2024 (3M 2023: 39.2%).
Selling and distribution expenses increased by 55% to ₦9.77 billion in 3M 2024 (3M 2023: ₦6.28 billion) due to huge increase in cost of diesel within the period.
Administrative expenses also increased by 75% to ₦4.59 billion in 3M 2024 (3M 2023: ₦2.61 billion)
Total operating expenses increased by 61% to ₦14.36 billion in 3M 2024 (3M 2023: ₦8.90 billion) on
the back of increase in selling and distribution cost along the supply chain to customers.
Operating profit grew by 117% to ₦104.7 billion in 3M 2024 (3M 2023: ₦48.15 billion) benefitting from top line growth driven by price adjustment and volume increase due to capacity expansion for our flour and pasta business. Operating profit margin however depreciated by 400bps to 29.3% in 3M 2024 (3M 2023: 33.3%).
Finance fees grew by 607% to ₦15.07 billion in 3M 2024 (3M 2023: ₦2.12 billion) largely driven by higher finance cost.
Profit before tax increased by 35% to ₦62.3.12 billion in 3M 2024 (3M 2023: ₦45.9billion), however, profit before tax margin dropped to 17.4%.
Profit after tax grew by 38% to ₦55.82 billion in 3M 2024 (3M 2023: ₦40.46 billion). while the Earning per Share (EPS) grew by 37% to N3.10 in 3M 2024 from N2.25 in the corresponding period.
Total assets increased by 1.1%to ₦1,082 trillion as of 3M 2024 (FY 2023: ₦1,070 billion) driven largely by strategic transactions in trade and other receivables as well as capital investment.
Total liabilities decreased by 5.4% to ₦764.6 billion as of 3M 2024 (FY 2023: ₦808.38 billion).
Total equity increased by 21.3% to ₦317.88 billion as of 3M 2024 (FY 2023: ₦262.05billion) mainly due
to a significant growth of 22% in retained earnings to ₦309.8 billion as of 3M 2024 (FY 2023: ₦254.09 billion).
Operating segment performance
Sugar division
The Sugar division contributed 67% to revenue in 3M 2024 (3M 2023: 66%). Sugar Revenue grew by
155% to ₦238.2 billion in 3M 2024 (3M 2023: ₦93.2 billion). The increase in revenue is due majorly to price adjustments within the period. Volume sold increased by 18% to 196,434 tons within the period (3M 2023: 166,373 tons).
Flour division
The Flour division contributed 23% to revenue in 3M 2024 (3M 2023: 20%). Revenue increased by
158% to ₦80.9 billion in 3M 2024 (3M 2023: ₦31.3 billion). The growth in revenue is due both to volume increase and price adjustment within the period.
Pasta division
The Pasta division contributed 10% to revenue in 3M 2024 (3M 2023: 14%). Revenue increased by
91% to ₦37.04 billion in 3M 2024 (3M 2023: ₦19.4 billion). The increase in sales volume is due to gradual commissioning of new pasta production lines. There was also a 4.8% increase in production volume to 32,760 tons in 3M 2024 (3M 2023: 31,230 tons).
Rice division
The Rice debuted in 2023. Its commercialization is beginning to see gains as its contribution to the revenue bucket picked up during the quarter. Revenue increased by 97% to ₦0.78 billion in 3M 2024 (3M 2023: ₦0.38 billion). There was also a 27% increase in production volume to 765 tons in 3M 2024 (3M 2023: 600 tons).
Conference call details
A conference call for analysts and investors will be held on Thursday 2nd May at 15.00 Lagos/15:00UK time.
Please register using the link below:
BUA Foods Q1 2024 Results Conference Call
To join the live webcast please click on the link below:
Live webcast
A copy of the presentation will be available on the Company's website on the day of the call
For further information, please
Contact: Abdulrasheed Olayiwola
Chief Financial Officer
- Abdulrasheed.Olayiwola@buafoodsplc.com
M: 234 803 334 3914
Emmanuel Chijioke
Head, Investor Relations
- emmanuel.chijioke@buafoodsplc.com
M: +234 8033651390
BUA Foods Investor RelationsIR@buafoodsplc.com
Definition of terms
Gross profit refers to revenue minus cost of sales.
Gross profit margin corresponds to gross profit as a % of revenue.
Operating expenses corresponds to Selling and distribution expenses, Administrative expenses and Other operating expenses.
EBITDA refers to earnings before interest, tax, depreciation and amortization.
EBITDA margin corresponds to EBITDA as a % of revenue.
Operating profit refers to gross profit minus operating expenses plus other operating income.
Operating profit Margin corresponds to EBIT as a % of revenue.
Profit before Tax corresponds to EBIT minus net finance (cost)/income and plus share of profit of associates and joint venture using the equity method.
Profit before tax margin corresponds to profit before tax as a % of revenue. Return on equity
corresponds to net profit reported to average total equity. Return on assets corresponds to net profit
reported to average total assets.
Earnings per share is profit after tax from continuing operations reported to weighted average number of shares.
About BUA Foods Plc
BUA Foods Plc (NGX: BUAFOODS) is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The Company owns strategically located plants across Nigeria, in addition to a cordial alliance with local stakeholders in host communities. Additionally, BUA Foods is a resilient business built on a strong brand proposition and is an operator that has a well-known reputation for delivering high-quality products.
BUA Foods continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain. The Company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.
Headquartered and listed in Nigeria, BUA Foods is one of the most capitalized companies on the NGX Exchange and a leading consumer goods firm by market value.
For more information visithttps://www.buafoodsplc.com/overview/
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Disclaimer
BUA Foods plc published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 16:32:23 UTC.
