BUA Foods has posted an impressive financial performance for 2024, with its after-tax profit skyrocketing to ₦274.9 billion, marking its highest-ever annual earnings.
This figure represents a remarkable 145% increase compared to the ₦112.1 billion reported in 2023, according to the company’s unaudited financial statement for the fiscal year.
The company’s revenue surged to ₦1.53 trillion, more than doubling the ₦729 billion recorded in the previous year. However, this growth came with a significant rise in the cost of sales, which climbed by 110% to ₦985 billion, up from ₦469 billion in 2023. Consequently, the gross margin saw a slight dip, settling at 35%, down from 36% the prior year.
Shareholders have reason to celebrate as earnings per share (EPS) more than doubled, reaching ₦15.27, compared to ₦6.23 in 2023.
Operating profit for the year soared to ₦489.2 billion, reflecting a 137% increase from the ₦206.3 billion recorded in 2023. This robust growth boosted the company’s operating margin to 32%, up from 28% in the previous year. BUA Foods also capitalized on non-core revenue streams, generating over ₦1 billion from the sale of scrap equipment and rice bran. Additionally, the company diversified into other business ventures, raking in ₦6.5 billion under “Sundry Income.”
The bakery flour segment was a standout performer in 2024, with revenue surging by 172% to ₦544.9 billion, up from ₦200.2 billion in 2023. Despite this, sugar remained the company’s top revenue driver. Furthermore, BUA Foods expanded its product portfolio, earning ₦11.4 billion from maize sales and ₦1.9 billion from semolina.
Raw material costs doubled in 2024, reaching ₦914.8 billion compared to ₦447.6 billion the previous year. Energy expenses also saw a sharp increase, tripling to ₦51.6 billion from ₦14.4 billion in 2023.
BUA Foods’ record-breaking financial performance underscores its ability to scale operations, optimize revenue streams, and navigate the evolving economic landscape.
