WED. 05 APRIL 2023-theGBJournal | BUA Foods Plc, Nigeria’s most profitable Foods and FMCG company listed on the NGX, today reported revenue growth of 26% y-o-y to N418.3 billion in FY 2022 (FY 2021: N333.2 billion).
The growth is attributed to a y-o-y increase of 32% in Sugar to N274.4 billion (FY 2021: N209.4 billion), 23.8% in Flour to N85.9 billion (FY 2021: N69.4 billion), and 5% in Pasta to N57.4 billion (FY 2021: N54.4 billion).
All other performance indicators are also on an upswing as earnings per share increased by 20% from previous year.
‘’This will undoubtedly boost shareholders return on investment with proposed dividend for 2022 being N4.50k (2021: N3.50k),’’ the company said.
Additionally, profit after tax surged to N91.3bn representing an increase of 31% from N69.7bn posted for the same period in 2021.
The Sugar division contributed 66% to revenue in FY 2022 (FY 2021: 64%). Sugar Revenue grew by 31.7% to N275.1 billion in FY 2022 (FY 2021: N209 billion), driven by price adjustments and export sales within the period.
Volume sold declined slightly by 1% to 607,218 tons within the period (FY 2021: 600,551 tons).
The decline in production is attributable to energy disruptions within the period. Both Non-fortified sugar and molasses gained significant increase in sales while Fortified Sugar sales sustained her market share sale at N129 billion.
Engr. Ayodele Abioye, the Managing Director, said while commenting on the performance: “BUA Foods Plc continued to maintain her leading position as the most profitable Foods and FMCG listed company in Nigeria with PBT of N107.2 Billion, a growth of 38% on prior year. This is despite the unending disruption of the business climate with high input costs, currency devaluation resulting in increasing operational cost.
We remain resolute to navigate the numerous business headwinds to continue delivering double digit growth with sustained focus on our market expansion strategy across our business segments. Delivering long term values to all our stakeholders as we continue to nourish lives remains cardinal.”
Key Highlights
-Revenue grew by 26% y-o-y to N418.3 billion in FY 2022 (FY 2021: N333.2 billion). This was due to a y-o-y increase of 32% in Sugar to N274.4 billion (FY 2021: N209.4 billion), 23.8% in Flour to N85.9 billion (FY 2021: ₦69.4 billion), and 5% in Pasta to N57.4 billion (FY 2021: N54.4 billion).
-Increase in cost of sales (+24%) to N285.6 billion in FY 2022 (FY 2021: N230.3 billion) was driven by an increase in raw materials cost and energy cost. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in higher cost of production.
-Gross profit increased by 29% to N132.8 billion in FY 2022 (FY 2021: N103 billion) even as gross profit margin appreciated by 90bps to 32% in FY 2022 (9M 2021: 31%) due to the slight selling price adjustment within the year.
-Selling and distribution expenses increase by 40% to N14.2 billion in FY 2022 (FY 2021: N10.1 billion) due to huge increase in cost of diesel within the period.
-Administrative expenses also increased by 28% to N18.7 billion in FY 2022 (FY 2021: N14.6 billion) driven majorly by the increase in general expenses (132.5%) to N5.4 billion in FY 2022 (FY 2021: N2.3 billion) and travels and other transportation fees. Total operating expenses increased by 33% to N33.9 billion in FY 2022 (FY 2021: N24.7 billion) on the back of significant increase in selling and distribution cost along the supply chain to customers.
-Operating profit grew by 47% to N117.5 billion in FY 2022 (FY 2021: N79.8 billion) benefitting from top line growth driven by price adjustment and our export sales. Operating profit margin appreciated by 500bps to 28% in FY 2022 (FY 2021: 23%).
-Profit before tax increased significantly by 38% to N107.2 billion in FY 2022 (FY 2021: N77.5 billion) while sustaining her double digit in profit before tax margin at 26%. This is the second year in a row with 2021 profit before tax margin at 24%.
-Profit after tax grew by 31% to N91.3 billion in FY 2022 (FY 2021: N69.7 billion), while the Earning per Share (EPS) grew by 20% to N5.07 in FY 2022 from N4.24 in the corresponding period.
-Total assets increased by 2.3% to N607.2 billion as of FY 2022 (FY 2021: N593.5 billion) driven largely by strategic transactions in trade and other receivables (+129% at N119.3 billion) which are all short term at reasonable fair value.
-Total liabilities decline by 4.2% to N376.3 billion as of FY 2022 (FY 2021: N392.8 billion). This was driven mainly by 10% reduction in borrowings now at N207.0 billion (FY 2021: N241.2.billion).
-Total equity increased by 15.1% to N230.9 billion as of FY 2022 (FY 2021: N200.7 billion) mainly due to a significant growth of 15.7% in retained earnings to N223 billion as of FY 2022 (FY 2021: N192.7 billion).
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