…Total assets climbed by 4.3% to N1.143 trillion as of 3M 2025 (12M 2024: N1.082 Trillion)
…Bua’s Operating profit also exceeded expectations and achieved a 33% growth to N138.9 billion in 3M 2025
FRI MAY 02 2025-theGBJournal| Bua Foods Managing Director Dr. Ayodele Abioye, on Friday hailed the company’s first-quarter 2025 earnings performance as ”strong”, after the food and fast-moving consumer goods (FMCG) company published its first-quarter unaudited accounts.
The company grew its revenue by 24% q-on-q to N442.1 billion in 3M 2025 (3M 2024: N356.9 billion), driven by a q-on-q increase of 145% in Flour to N176.2 billion (3M 2024: N80.9 billion), 12% in Pasta to N41.5 billion (3M 2024: N37.04 billion), and 1617% in Rice to N13.02 billion (3M 2024: N0.78 billion).
It saw a reversal of fortune in the sugar segment which dropped marginally q-o-q by 11% to N211.3 billion (3M 2024: N238.2 billion).
But despite this fall, Bua Abioye said the company will remain focused on deepening market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security.
Bua in the period under review, saw gross profit rise by 39% to N160.91 billion in 3M 2025 (3M 2024: N115.42 billion). In alignment with the increase, gross profit margin also appreciated by 406bps to 36.4% in 3M 2025 (3M2024: 32.3%).
Total assets climbed by 4.3% to N1.143 trillion as of 3M 2025 (12M 2024: N1.082 Trillion) driven largely by trade transactions and production capacity expansion as profit surged by 124% to N125.28 billion in 3M 2025 (3M 2024: N55.82 billion).
Bua Earnings per Share (EPS) grew by 125% to N6.96 in 3M 2025 from N3.10 in the corresponding period.
Its total equity stands at N554.34 billion as of 3M 2025 (12M 2024: N429.06 billion) after a 29.2% rise, due to a significant growth of 30% in retained earnings to N546.3 billion as of 3M 2025 (12M 2024:N420.9 billion).
Bua’s Operating profit also exceeded expectations and achieved a 33% growth to N138.9 billion in 3M 2025 (3M 2024: N104.7 billion), benefitting from top line growth driven by strategic pricing policies.
Also, Operating profit margin appreciated by 209bps to 31.4% in 3M 2025 (3M 2024: 29.3%).
Operating segment performance
Sugar division: The Sugar division contributed 48% to revenue in 3M 2025 (3M 2024: 67%). Sugar revenue declined by 11% to N211.3 billion in 3M 2025 (3M 2024: N238.2 billion). The decrease in revenue is due majorly to low demand within the quarter. Volume sold decreased by 24% to 149,060 tons within the period (3M 2024: 196,434 tons).
Flour division: The Flour division contributed 40% to revenue in 3M 2025 (3M 2024: 23%). Revenue increased by 118% to N176.2 billion in 3M 2025 (3M 2024: N80.9 billion).
The growth in revenue is due both to increased sales volume and strategic pricing within the period. Contribution margin decreased to 30% from 32% for the same period last year due to increase in input cost.
Pasta division: The Pasta division contributed 9% to revenue in 3M 2025 (3M 2024: 10%). Revenue increased by 12% to N41.5 billion in 3M 2025 (3M 2024: N37.04 billion). Contribution margin increased to 43% from 33% for the same period last year.
Rice division: The Rice division contribution to the revenue picked up in 3M 2025. Revenue increased by 1617% to N13.02 billion in 3M 2025 (3M 2024: N0.78 billion). There was also a significant increase in production volume to 11,131 tons in 3M 2025 (3M 2024: 765 tons).
Abioye said he is confident that Bua’s unique and integrated business model, strong financial position, and robust execution will continue to enhance its strategic growth and create lasting value for all stakeholders throughout 2025.
The food giant has scheduled a conference call for analysts and investors on Wednesday 7th May 2025 at 15.00 WAT.
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