BUA Foods’ after-tax profit in 2024 more than doubled its 2023 numbers, as it hit ₦274.9 billion, the group’s highest ever. According to the group’s unaudited financial statement for FY 2024, the group’s PAT was 145 per cent higher than the ₦112.1 billion recorded in FY 2023.
BusinessDay reports that the group’s revenue in FY 2024 grew to ₦1.53 trillion, more than double the ₦729 billion recorded in 2023. There was a 110 per cent growth in cost of sales to ₦985 billion, from ₦469 billion posted in FY 2023. This led to a slight decline in the group’s gross margin to 35 per cent, from 36 per cent recorded in 2023.
Investors will also smile to the bank as the group’s earnings per share more than doubled to ₦15.27, from ₦6.23 as of 2023.
The group’s operating profit hit ₦489.2 billion in 2024, marking a 137 per cent growth from the ₦206.3 billion recorded in 2023. This growth translated into an operating margin of 32 per cent, from the previous year’s 28 per cent. In 2024, BUA optimised its operations by selling some of its scrap equipment and rice bran which generated over ₦1 billion in revenue for the company. The group also ventured into businesses outside its main operations, earning ₦6.5 billion in revenue from these activities. This income was recorded under “Sundry Income.”
In 2024, the group’s bakery flour business was a huge money spinner, as its revenue surged by 172 per cent to ₦544.9 billion, from ₦200.2 billion as of 2023. Although, the sugar business is still the bigger revenue contributor. The group also added maize to its income sources, as it recorded an ₦11.4 billion revenue from maize, and ₦1.9 billion from its semolina business.
The cost of raw materials doubled to ₦914.8 billion during the financial year, from ₦447.6 billion posted in 2023. Energy costs also tripled to ₦51.6 billion, from ₦14.4 billion as of 2023.
BUA Foods is currently trading at a share price of ₦415. With a price-to-earnings ratio of 27.2x, BUA Foods ranks relatively as one of the cheapest trillion-Naira listed equities.
