BUA Foods PAT up 142% at ₦‎95.2bn in H1’23

BUA Foods, a leading food company in Nigeria, has seen a remarkable 142.2 per cent growth in its profit after tax, reaching ₦95.2 billion in the first half of the year. Ayodele Abioye, the Managing Director at BUA Foods, attributes this outstanding performance to the company's clear goal at the beginning of 2023 to leverage its unique business model. Abioye emphasizes that the growth is driven by volume expansion, innovative product offerings, and strategic market expansion despite the challenging economic environment in Nigeria. The company's revenue has also seen a significant increase, growing by 90% to about ₦320 billion. One of the key drivers of BUA Foods' impressive performance has been the 36% growth in related volumes, which has directly impacted the revenue growth. Abioye highlights the company's expansion strategies across its five business divisions, which include sugar, flour, pasta, rice, and oil mill. These initiatives have allowed BUA Foods to meet the increasing demands in the market and expand its market share in Nigeria. Additionally, the company's export sales have grown by 15%, signaling a critical market for BUA Foods. Abioye mentions that the company is exploring opportunities within the Africa free trade zone to further enhance its export capabilities. He also attributes the company's success in mitigating FX related losses to a robust supply chain hedging strategy, which has helped minimize the impact of foreign exchange fluctuations on the company's financial performance. Despite facing challenges such as rising input costs and inflation, Abioye remains optimistic about BUA Foods' outlook and its ability to weather potential storms like the removal of fuel subsidies and a potential review of electricity tariffs. He acknowledges the impact of energy prices on manufacturing costs but expresses confidence in the company's resilience and ability to pass on any cost savings to consumers through reduced product prices. Looking ahead, BUA Foods is focusing on product innovations, expanding its market presence, and capitalizing on government support for the agricultural sector. The company's strategic expansion plan includes increasing capacity in essential product lines like sugar, flour, and rice, while introducing new innovative products and packaging to cater to evolving consumer preferences. In conclusion, BUA Foods' financial success in the first half of the year demonstrates the company's commitment to sustainable growth and market leadership in the food industry. With a strong focus on innovation, market expansion, and operational efficiency, BUA Foods is well-positioned to navigate the challenges ahead and continue delivering value to its customers and stakeholders.