BUA Foods Plc has reported a Profit After Tax (PAT) of N40.5 billion for the first quarter 2023.
The figure represents growth of 77.1 per cent compared to the N22.85 billion realised in Q1 2022.
Profit before tax increased significantly by 85% to N45.9 billion in Q1 2023 (Q1 2022: N24.8 billion) while sustaining her double digit in profit before tax margin at 31.8 from 27.6% in comparable quarters according to the statement by the company.
Profit after tax grew by 77.1% to N40.4 billion in Q1 2023 (Q1 2022: N22.8 billion) while the Earning per Share (EPS) grew by 77% to N2.25 in Q1 2023 from N1.27 in the corresponding period.
Total assets increased by 6.9% to N649.6 billion as of Q1 2023 (FY 2022: N607.2 billion) driven largely by growth in retained earnings of 18.1% at N263.3 billion from N222.9 million at FY 2022.
Total liabilities increase slightly by 0.5% to N378.2 billion as of Q1 2023 (FY 2022: N376.2 billion). This was driven mainly by trade and other payables amidst other current liabilities surge by 37.5% to N50.5 billion from N36.7 billion in FY 2022.
The revenue grew by 60.2% quarter-on-quarter to N144.3 billion in Q1 2023 (Q1 2022: N90.1 billion). The increment was due to an increase of 71.7% in Sugar to N93.2 billion (Q1 2022: N54.2 billion), 57.8% in Flour to N31.2 billion (Q1 2022: N19.8 billion), and 21.8% in Pasta to N19.4 billion (Q1 2022: N15.9 billion).
Four operating divisions drove the performance: Sugar, flour, pasta and rice.
The Sugar division contributed 64.6% to revenue in Q1 2023 (Q1 2022: 60.4%). Sugar Revenue grew by 71.7% to N93.2 billion in Q1 2023 (Q1 2022: N54.2 billion). This was driven by sales volume growth, price adjustments and export sales within the period.
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Volume sold increases significantly by 25% to 166,373 tons within the period (Q1 2022: 132,941 tons). Fortified Sugar sales sustained her market share with 95.7% increase sale to N61.6 billion.
The Flour division contributed 21.7% to revenue in Q1 2023 (Q1 2022: 22%). Revenue increased by 57.8% to N31.3 billion in Q1 2023 (Q1 2022: N19.8 billion). This was driven by increase in sales volume and redesigned route to market distribution along the supply value chain.
While flour volume sold increased by 16% to 53,215 tons within the period (Q1 2022: 45,810 tons). Revenue from bakery flour grew by 61.7% to N29.6 billion in Q1 2023 (Q1 2022: N18.3 billion) while wheat bran appreciated by 10.1% to N1.68 billion in Q1 2023 (Q1 2022: N1.5 billion).
The Pasta division contributed 13.4% to revenue in Q1 2023 (Q1 2022: 17.6%). Revenue increased by 21.8% to N19.4 billion in Q1 2023 (Q1 2022 N15.9 billion). This was driven by adjustments in pricing amidst other innovative sales initiatives within the year. There was 9% drop in production volume to 31,230 tons (Q1 2022: 134,155 tons) within the period.
The Rice division as new entrance to the business contributed 0.3% valued at N0.38 billion to revenue in Q1 2023. The potential looks good in the coming quarters.
Commenting on the results, the Managing Director, Engr. Ayodele Abioye, said: “BUA Foods Plc continue to deliver strong performance across key financial metrics despite the business climate headwinds characterized in Q1 by the economic impact of the general election, high food inflation and shortage of cash in circulation following the currency redesign policy. We continue to leverage our unique strategic business model to minimize the impact. We are committed to remain the most profitable business in our sector while creating long term values for our stakeholders as we expand our frontiers.”
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