From N85.5 billion in the third quarter of 2021 to N120.4 billion in the third quarter of 2022, BUA Foods’ turnover increased by 41%.
Net profit after tax jumped 65 percent to N30.04 billion in the third quarter of this year from N18.2 billion in the corresponding period of 2021.
Commenting on the results, Ayodele Abioye, the Managing Director of BUA Foods Plc stated thus: “We continue to navigate the high input cost environment to deliver double-digit growth within the period. We are making progress with the recommencement of the rice business before the year-end of 2022 to further diversify our revenue base. In addition, we are making progress with the backward integration plans for the sugar business and our capacity expansion plans for the flour, rice, and pasta divisions.”
The firm incurred finance charges of N2.25 billion in the third quarter of this year, a 3.4 percent decrease from N2.33 billion in the corresponding period of 2021.
BUA Foods’ cash and cash equivalents increased to N30.47 billion in September 2022, a 265 percent increase from N8.34 billion in September 2021.
Here are seven things to note about BUA Foods Q3 performance
Profit After Tax
BUA Foods’ net profit after tax amounted to N30.04 billion in the third quarter of 2022 from N18.2 billion in the third quarter of 2021.
Turnover
BUA Foods’ turnover surged to N120.4 billion in the third quarter of 2022, up 41 percent from N85.5 billion in the third quarter of 2021.
Cost of sales
The consumer goods firm’s cost of Sales increased by 32.3 percent to N79.4 billion in the third quarter of 2022 from N60 billion in the corresponding period of 2021.
BUA Foods stated in a note that “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 a higher cost of production.”
Administrative expenses – 29% increase
BUA Foods’ administrative expenses rose to N1.89 billion in the third quarter of this year, indicating a 29.4 percent increase from N1.46 billion in the third quarter of 2021.
Selling & Distribution expenses
BUA Foods’ selling & distribution expenses grew 65 percent to N5.48 billion in the third quarter of 2022 from N3.32 billion in the third quarter of 2021.
Income Tax
The consumer goods firm incurred an income tax expense of N1.83 billion in the third quarter of this year, indicating a 12 percent increase from N1.63 billion in the third quarter of 2021.
Earning per share
Earning per share attributable to shareholders increased to N1.67 in the third quarter of 2022 from N1.01 in the same period of 2021.
BUA Foods is a food and fast-moving consumer goods business, which processes, manufactures, produces, and distributes food materials such as sugar, flour, pasta, rice, and edible oils as well as packaged foods. The company’s products currently include fortified and non-fortified sugar, flour for large and small-scale use, and pasta.
Source:businessday
