Q1: BUA Foods increases revenue by 24 per cent to N442.1bn

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14 hours ago

BUA Foods Plc has announced its unaudited financial results for the first quarter of 2025, demonstrating robust growth across key financial indicators.

The company recorded a significant revenue growth of 24 percent to N442.1 billion in Q1 2025, up from N356.9 billion in the corresponding period of 2024.

This impressive performance was driven by substantial increases in revenue from Flour, which soared 145 percent to N176.2 billion, Pasta rose 12 percent to N41.5 billion, and Rice recorded a remarkable increase of 1617 percent to N13.02 billion. Sugar revenue, however, saw a slight 11 percent quarter-on-quarter decrease to N211.3 billion.

BUA Foods also reported a healthy gross profit of N160.91 billion in Q1 2025, a 39 percent increase compared to N115.42 billion in Q1 2024. This growth led to an improved gross profit margin of 36.4 percent, a 406 basis point increase from 32.3 percent in the prior quarter.

Total operating expenses for the period increased by 56 percent to N22.39 billion, due to increases in selling and distribution expenses which rose 13 per cent to N11.08 billion driven by logistics costs, and administrative expenses up 147 percent to N11.32 billion.

Despite the increase in operating expenses, BUA Foods achieved a substantial growth of 124% in profit after tax (PAT) to N125.28 billion in Q1 2025, compared to N55.82 billion in Q1 2024. Consequently, Earnings per Share (EPS) also saw a significant increase of 125 percent to N6.96 from N3.10 in the corresponding period.

The company’s total equities stood strong at N554.34 billion as of Q1 2025, representing a 29.2 percent increase from N429.06 billion in FY 2024. This growth was mainly driven by a significant 30 percent increase in retained earnings.

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said “We are pleased to begin 2025 on a strong note, as our business continued to demonstrate resilience and adaptability amidst a still-evolving macroeconomic landscape. Despite operating in a high-cost environment, our proactive supply chain measures and improved internal efficiencies enabled us to sustain strong operational momentum.”

“Revenue increased by 24 percent, while Net Profit leaped by 124 percent to N125Billion further re-affirming our position as a leading food business on the Nigerian Exchange Limited. Our ongoing investments in production capacity, product/package innovation and route-to-market development continue to impact our results positively, enabling fulfilment of customer and consumer demand.”

“As we look ahead, we remain focused on deepening our market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025.”