Business
BUA Foods Reports 31% Increase in Profit after Taxes in FY 2022.
BUA Foods reports 31% increase in profit after taxes in FY 2022.
BUA Foods, a consumer goods firm, has reported a 31 percent increase in its profit after tax for the financial year ended December 31, 2022, when compared to the previous year.
This was disclosed in the 2022 financial year results of the company filed with the Nigerian Exchange Limited on Wednesday.
In its 2022 financials, profit after tax surged to $91.3bn. This represents an increase of 31 percent from the $69.7 billion posted for the same period in 2021. Its 2022 full-year revenue also rose by 26 percent, to N418.3bn from N333.2bn in 2021.
The fast-moving consumer goods company said that it maintained its leadership position in the market despite economic headwinds.
Its profit before taxes grew by 38 percent to N107.2 billion in 2022. Other performance indicators are also on the upswing, as earnings per share increased by 20 percent from the previous year. A dividend of N4.50k was proposed for 2022 (2021: N3.50k).
Commenting on the results, the Managing Director, Engr. Ayodele Abioye, said, “BUA Foods Plc continued to maintain its leading position as the most profitable food and FMCG listed company in Nigeria with a PBT of N107.2 billion, a growth of 38 percent on the prior year.”
This is despite the unending disruption of the business climate, with high input costs and currency devaluation resulting in increased operational costs.
“We remain resolute to navigate the numerous business headwinds to continue delivering double-digit growth with a sustained focus on our market expansion strategy across our business segments.”
Meanwhile, the group said that its total operating expenses increased by 33 percent to N33.9 billion in 2022 (from N24.7 billion in 2020) on the back of a significant increase in selling and distribution costs along the supply chain to customers.
Its operating profit also grew by 47 percent to 117.6 billion in 2022 (2020: 79.8 billion), benefitting from top-line growth driven by price adjustment and our export sales.
A breakdown of the operating divisional performance showed that the sugar division of BUA Foods contributed 66 percent to revenue in 2022 (2021: 64 percent). The flour division contributed 20.6 percent to revenue in 2022 (2021: 16 percent).
The pasta division contributed 14 percent to revenue in 2022 (2021: 20 percent).
