Written by SpringNewsNG Media Limited, April 4, 2025

BUA Foods Plc, one of Nigeria’s foremost consumer goods companies, has posted a remarkable 109% increase in revenue, surpassing ₦1 trillion for the first time in its history. For the fiscal year ending December 31, 2024, the company recorded an impressive ₦1.53 trillion in revenue, more than double the ₦729.4 billion reported in 2023, marking a significant milestone since its listing on the Nigerian Exchange in 2021.

The growth was fueled by heightened demand for BUA Foods’ core offerings, including sugar, flour, and pasta. Strategic pricing, expanded production capacity, and deeper market penetration across Nigeria played a crucial role in this remarkable performance.

Despite the challenges posed by a ₦178 billion foreign exchange loss due to currency depreciation, BUA Foods’ pre-tax profit surged by 162.9%, rising to ₦284.3 billion from ₦108 billion. After-tax profit also soared by 137.3%, reaching ₦265.99 billion from ₦112 billion. These results reinforce BUA Foods’ position as one of Nigeria’s most profitable companies in the consumer goods sector.

Resilience Amid Economic Challenges

Ayodele Abioye, the managing director of BUA Foods, attributed the company’s success to its ability to navigate challenging macroeconomic conditions, including supply chain disruptions and foreign exchange losses. He emphasized the company’s focus on creating value for stakeholders, stating, “Despite significant macroeconomic challenges, our business has effectively navigated the resulting impacts on supply chain costs and foreign exchange losses. Our strategic expansion and operational efficiencies have positioned us to meet the rising demand from our customers.”

Looking forward, Abioye expressed optimism, pointing to ongoing investment initiatives aimed at addressing Nigeria’s food supply challenges. “With stability in the macroeconomic environment, we are committed to further expanding our operations and investments to support sustainable growth and food security,” he added.

Flour and Sugar: Key Drivers of Growth

In 2023, BUA Foods expanded its flour production capabilities to meet the increasing demand from Nigeria’s bakery industry and small-scale food businesses. Flour, which has gained substantial traction, contributed significantly to the company’s success, with the flour segment growing by 171% year-on-year, from ₦216.7 billion in 2023 to ₦589.5 billion in 2024. The flour segment now accounts for 35.5% of total revenue, up from 27.4% the previous year.

Sugar, the company’s traditional top-selling product, still holds the largest revenue share, generating ₦734.5 billion and contributing 48% of total revenue. Despite a slight drop in its percentage contribution, this highlights BUA Foods’ increasing diversification across its product lines.

The company’s branded pasta products, launched just two years ago, continue to gain popularity among price-sensitive consumers. The pasta segment contributed ₦197 billion to revenue, accounting for 12.9% of total sales, showcasing BUA Foods’ growing portfolio of consumer essentials.

Strong Local Presence

BUA Foods’ dominance in the Nigerian market is evident, with local sales making up 95.5% of total revenue in 2024. This robust local presence positions the company to capitalize on the growing demand for locally produced food products, further solidifying its leadership in the consumer goods sector.

Overcoming Macroeconomic Headwinds

Despite its stellar performance, BUA Foods was not immune to the macroeconomic challenges that shaped the business environment in 2024. Finance costs increased by 15.1%, driven primarily by a ₦173 billion foreign exchange loss, following the depreciation of the naira. Additionally, raw material costs surged, accounting for over 91% of the company’s cost of sales, which climbed by 110% to ₦984.98 billion.

Nevertheless, BUA Foods successfully improved its operating profit margin by 376 basis points, reaching 32% in FY 2024. This was supported by lower impairment losses and tight expense controls. Selling and distribution expenses increased by 33.4%, while administrative costs rose by 17.8%, reflecting ongoing investments in operational efficiencies.

Debt Management and Future Prospects

The company’s debt profile showed a positive trend, with total debt decreasing to ₦391.9 billion, down from the previous year. EBITDA more than doubled, increasing by 131.5% to ₦499.4 billion, bolstered by higher gross profits and improved margin performance.

In line with its strong results, BUA Foods’ board of directors has proposed a dividend payout of ₦13 per share, more than double the ₦5.50 distributed in 2023, rewarding shareholders for their continued trust in the company.

Conclusion

BUA Foods’ outstanding performance in 2024 underscores its resilience in navigating economic challenges while expanding its product offerings and market reach. With a clear focus on food security and sustainable growth, the company is well-positioned to continue its upward trajectory in the coming years, addressing Nigeria’s food supply needs while creating lasting value for its stakeholders.

---