(Unaudited Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Turnover (Revenue): ₦1.53 trillion (2024) vs. ₦729.44 billion (2023)
- Gross Profit: ₦541.71 billion (2024) vs. ₦260.46 billion (2023)
- Operating Profit: ₦489.19 billion (2024) vs. ₦206.32 billion (2023)
- Profit Before Tax: ₦289.07 billion (2024) vs. ₦108.12 billion (2023)
- Net Profit After Tax: ₦274.95 billion (2024) vs. ₦112.10 billion (2023)
- Earnings Per Share (EPS): ₦15.27 (2024) vs. ₦6.23 (2023)
BUA Foods recorded an exceptional 109% year-over-year revenue growth, demonstrating resilience and market strength. However, foreign exchange losses impacted profitability, leading to ₦188.68 billion in FX-related losses. Despite these challenges, the company maintained strong cost management and operational efficiency.
Operational Highlights & Cost Management
- Cost of Sales: ₦984.98 billion (2024) vs. ₦468.98 billion (2023)
- Selling & Distribution Expenses: ₦39.83 billion (2024) vs. ₦29.85 billion (2023)
- Administrative Expenses: ₦20.28 billion (2024) vs. ₦17.21 billion (2023)
Despite doubling revenue, operating margins improved due to strategic cost-control initiatives. The company focused on efficiency in logistics, procurement, and production, ensuring sustainable profit margins even in a high-inflation environment. BUA Foods also leveraged supply chain efficiencies to reduce production costs and enhance scalability.
Investment in Innovation & Sustainability
To drive long-term growth, BUA Foods invested in automation, energy-efficient production processes, and waste reduction strategies. The company also expanded its renewable energy adoption to reduce reliance on non-renewable sources, strengthening sustainability efforts.
Capital Expenditures & Shareholder Returns
- Dividends Paid: ₦99 billion in 2024
- Total Assets: ₦1.06 trillion
- Total Liabilities: ₦618.87 billion
- Shareholder Equity: ₦438.00 billion
BUA Foods continued delivering value to shareholders, with a record dividend payout and strategic reinvestment in operations. The company’s financial stability, with a solid asset base, enables further expansion in production and distribution. Additionally, capital expenditure focused on modernizing production facilities, ensuring competitive advantage in the Nigerian and African food markets.
Management Commentary
The company’s sugar, flour, pasta, and rice segments drove revenue growth, supported by strong consumer demand and enhanced distribution networks. Despite challenges from foreign exchange fluctuations, the company mitigated risks through hedging strategies and local sourcing initiatives.
Key Takeaways from Management:
- Strong revenue expansion across core product lines
- Strategic cost optimization despite inflationary pressures
- Increased investment in logistics and local production to minimize FX risks
- Expansion of retail distribution partnerships to enhance market penetration
- Adoption of advanced technology to streamline production and improve efficiency
Outlook for 2025
BUA Foods is positioned for continued growth, leveraging:
- Expanding market share through increased production capacity
- Strategic partnerships with distributors and suppliers
- Investments in automation and efficiency improvements
- Increased sustainability efforts with renewable energy adoption
- Diversification into new product categories to drive additional revenue streams
However, FX volatility and macroeconomic uncertainties pose challenges. The company aims to counteract these risks through aggressive cost management and enhanced financial planning.
Shareholding Structure & Market Information
- Major Shareholder: Abdulsamad Rabiu (89.55%)
- Free Float: 5.02% (₦353.04 billion in value)
- Stock Price as of 31st Dec 2024: ₦415 per share
Investor confidence remains high, with the company’s strong market fundamentals ensuring continued stock market stability. Institutional investors have also shown growing interest, indicating potential for enhanced market liquidity.
Conclusion
BUA Foods Plc achieved record-breaking financial performance in 2024, driven by strategic expansion, cost efficiency, and market demand. The company is set for sustained growth in 2025, despite external economic challenges, through continued innovation and financial discipline. With a focus on automation, sustainability, and expansion, BUA Foods remains well-positioned to maintain its market leadership while delivering consistent value to stakeholders.
