BUA Foods’ annual profit surges by 30% as sales hit N418 billion

Abdul Samad Rabiu’s BUA Foods on Monday reported a profit surge boosting its bottom line for 2022 by 30 per cent compared to the preceding year, backed by a sales growth that shot revenue to a record N417.8 billion.

The food company, which seized the prime spot from Nestlé Nigeria as the country’s biggest consumer goods firm by market value last January, currently carries a market capitalisation in excess of N1.3 trillion.

BUA Foods went public barely a year ago after combining its flour, sugar, edible oil and pasta businesses, listing 18 billion ordinary shares in Lagos.

According to details of its financial reports posted on the Nigeria Exchange’s website on Monday, revenue grew by more than a quarter at N417.8 billion, 65.5 per cent of that contributed by sugar sales.

Administrative expenses shrank by 22.5 per cent as the company pared down general expenses and bank charges, helping to cushion the impact of costs on earnings.

Mr Rabiu, Africa’s fourth richest man by Forbes’ estimate, controls BUA Foods, holding a 92.6 per cent stake in the company.

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Finance income declined by as much as 98.6 per cent to 39.9 million from N2.9 billion. Conversely, finance costs advanced to N8.2 billion, reflecting a jump of 61.6 per cent.

Profit before taxation climbed 29.5 per cent to N100.6 billion, while net profit grew from N69.8 billion to N90.4 billion, representing a 29.6 per cent increase year on year.

Total assets as of the end of the review year were N612.1 billion compared to N593.5 billion a year earlier.

Net profit margin, the metric that measures how much of revenue has turned into profit, was 21.6 per cent relative to 20.9 per cent in 2021.

This month, BUA Foods was admitted into the NGX 30, the equity index that tracks Nigeria’s top 30 public companies in terms of liquidity and market capitalisation.