The Board of BUA Foods Plc has proposed a final dividend of N5.50 per ordinary share of 50 kobo each.
Subject to appropriate withholding tax and approval, the final dividend will be paid to shareholders whose names appear in the Register of Members as at the close of business on August 23, according to a notice sent to the Nigerian Exchange Limited (NGX).
In the corporate action, BUA Foods said the dividend will be paid electronically on September 26 to shareholders whose names appear on the Register of Members as of August 23 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
The company also announced its audited financial results for the 12 months period ended December 31, 2023, showing Profit After Tax (PAT) growth by 23 percent to N112.1 billion while turnover grew by 74 percent to N729.4 billion.
The result also indicated that the company’s revenue grew by 74 percent year-on-year (y-o-y) to N729.4 billion in 2023 as against N418.3 billion recorded in 2022. This was due to a y-o-y increase of 54 percent in sugar to N422.5 billion, 152 percent in flour to N216.9 billion and 54 percent in pasta to N87.9 billion.
Commenting on the results, Ayodele Abioye, Managing Director, BUA Foods said, “2023 witnessed a very challenging operating environment characterised by macroeconomic headwinds.
Abioye said, “We were able to navigate these challenges leveraging our unique strategic business model to deliver a strong performance as top line grew by as much as 74 percent, with gross profit leaping by 96 percent while total assets increased significantly. This is a reaffirmation of our commitment to drive shareholder value underpinned by our unique capabilities as a strong, diversified and scalable food business.
“Expansion efforts across all frontiers continue to crystallise in supporting growth as we accelerate our strategy to become a leading food brand on the continent. We continue to drive efficiency through our integrated supply chain system by leveraging economies of scale in alignment with market expansion efforts towards fulfilling the increasing demand of customers.
“Looking ahead, we remain committed to unlocking opportunities for sustained and improved business performance while being confident in our strategic plans for the year 2024. Creating long-term value for all stakeholders is an imperative, even as we stay true to our creed of nourishing lives.”
Further analysis of the result showed that gross profit increased by 96 percent to N260.45 billion in 12 months 2023 as against N132.79 billion recorded in the previous year. Gross profit margin also appreciated by 400 basis points (bps) to 35.7 percent in 12 months 2023 due to the slight selling price adjustment within the year.
Selling and distribution expenses increased by 110 percent to N29.84 billion in 12 months 2023 due to increase in cost of diesel within the period. Administrative expenses also declined by eight percent to N17.21 billion in 12 months 2023.
Total operating expenses, therefore, increased by 43 percent to N47.06 billion in 12 months 2023 on the back of increase in selling and distribution cost along the supply chain to customers. EBITDA increased by 74 percent to N215.6 billion in 12 months 2023, driven by growth in gross profit. Also, EBITDA margin appreciated by 20 basis points (bps) to 29.6 percent in 12 months 2023.
Therefore, operating profit of BUA Foods grew by 75 percent to N206.3 billion in 12 months 2023, benefitting from top-line growth driven by price adjustment and volume increase due to capacity expansion for flour and pasta business. Operating profit margin appreciated by 20bps to 28.2 percent in 12 months 2023.
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