BUA Foods Plc, Nigeria’s third largest publicly listed company, has posted an impressive half year 2024 earnings, beating analysts’ expectations on both the top and bottom lines as its stock makes a ton of sense to investors while peer rivals have capitulated to macroeconomic headwinds.
Restructuring and merger of all 5 business divisions and conversion to plc and the introduction of new products combined with hedging against foreign currency risk have helped drive better-than-expected results and upside in stock performance
During this period, the company has made significant strides in executing its strategic plans, successfully launching new products, specifically macaroni, premium pasta, and semolina, to meet the yearnings of its customers.
BUA Foods diversified portfolio and expansion into new markets impacted revenue growth while strengthening its partnership with key stakeholders.
Expectedly, sales surged 109.51 per cent to N672.39 billion as at June 2024.
The percent growth at the top line (sales) outperforms Unilever’s revenue growth of (+40.92 percent); Cadbury, (+44.46 percent); Nestle Nigeria, (+55.47 percent); Flourmills (+67.23 percent); Nigerian Breweries, (+72.94 percent); Guinness Nigeria (+30.53 percent); International Breweries, (+92.20 percent), Dangote Sugar, (+45.78 percent), and Nascon Allied, (+32.14 percent).
Because BUA Foods maintained a strong focus on cost optimization, it achieved sustained margins and profitability.
The company’s profit after tax (PAT) surged by 414.54 percent to N130.93 billion as at June 2024, making it the most profitable consumer goods firm in Nigeria even amid a difficult business environment.
Peer rivals such as Nestle Nigeria, Cadbury, Nigeria Breweries, Guinness, International Breweries, and Dangote Sugar, posted losses after taxes as they were hard hit by foreign currency revaluation losses.
Unilever, Flourmills, and Nascon Allied posted profits of N4.43 billion, N6.97 billion, and N4.84 billion.
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