BUA Foods Surpasses N1.5 Trillion Revenue in 2024, Posts 137% Profit Growth

BUA Foods Plc has delivered record-breaking financial results for 2024, crossing the trillion-naira revenue milestone for the first time and achieving significant profit growth across its key product segments.

According to its audited financial statements for the year ended December 31, 2024, BUA Foods recorded N1.527 trillion in revenue, more than double the N729.4 billion reported in 2023. This represents a 109.5% year-on-year increase, marking the highest annual revenue in the company’s history since its listing on the Nigerian Exchange in 2021.

Pre-tax profit soared 162.9% to N284.32 billion, while profit after tax surged 137.3% to N265.99 billion, reinforcing BUA Foods’ position as one of Nigeria’s most profitable consumer goods companies.

This remarkable performance comes despite a N178 billion foreign exchange loss, as currency depreciation drove up financing costs.

Key Drivers of BUA Foods’ 2024 Performance

BUA Foods’ impressive results were fuelled by:

• Strong demand for sugar, flour, and pasta
• Expanded production capacity
• Strategic pricing strategies
• Deeper market penetration across Nigeria

These factors boosted revenue and profitability, helping the company improve its operating profit margin to 31% despite macroeconomic challenges.

Flour Segment Fuels Revenue Growth

While sugar remains BUA Foods’ top-selling product, the flour segment drove record earnings in 2024, with a 171% year-on-year revenue increase.

• Flour sales contributed N541 billion, accounting for 35.5% of total revenue, up from 27.4% in 2023.
• Growth was driven by rising demand from bakeries and small-scale food businesses, which rely on affordable, locally produced flour.
• The company expanded flour production lines in late 2023, a move that has significantly boosted output.

Performance Across Other Key Segments

• Sugar: Generated N734.5 billion, contributing 48% of total revenue. While still the dominant segment, its share of total sales slightly declined due to the company’s diversification strategy.

• Pasta: Contributed N197 billion to revenue, making up 12.9% of total sales. BUA Foods’ branded pasta products, launched two years ago, continue to gain traction among price-sensitive consumers, offering an alternative to more expensive imported brands.

The company’s focus on providing competitively priced products has helped it strengthen its market share, even amid economic challenges and inflationary pressures.

BUA Foods Declares N13 Dividend, a 136% Increase

On the back of its stellar financial performance, BUA Foods’ Board of Directors has proposed a dividend of N13 per share, more than double the N5.50 paid in 2023.

This 136.4% increase underscores the company’s commitment to shareholder value and confidence in its long-term growth potential.

Navigating Economic Challenges and Financial Strength

Despite record-breaking revenue and profits, BUA Foods faced macroeconomic headwinds, including:

• N173 billion in foreign exchange losses due to naira devaluation.
• Higher raw material costs, with over 91% of the company’s cost of sales tied to raw materials.

However, the company improved its financial position:

• Debt reduction: Total debt dropped to N391.85 billion, primarily short-term borrowings for import financing.
• Lower gearing ratio: decreased from 210% in 2023 to 81% in 2024, signalling a healthier balance sheet.

Outlook for 2025: Sustaining Growth Momentum

BUA Foods is poised for continued expansion, focusing on:

• Increasing production capacity
• Enhancing cost efficiencies
• Deepening market penetration

With a strong financial foundation and rising consumer demand, the company is well-positioned to sustain its impressive growth trajectory in 2025.