BUA Foods hits pre-tax profit of N62.4 billion in Q1 2024, as FX losses hit N27.3 billion

BUA Foods has posted a profit before tax of N62.4 billion in Q1 2024, representing a 36% year-on-year increase from the N45.9 billion pre-tax profit posted in Q1 2023.

The group recorded an impressive showing during the quarter despite incurring a net loss of N27.3 billion on exchange rate movements.

During the quarter, BUA Foods posted a revenue of N356.9 billion, marking a 147% year-on-year growth from the N144.3 billion revenue posted in Q1 2023. Its sales cost also increased year-on-year by 175.5% to N241.5 billion from N87.7 billion in Q1 2023.

Key Highlights (Q1 2024 vs Q1 2023)

Revenue: N356.9 billion, +147% YoYCost of Sales: N241.5 billion, +175% YoYGross profit: N115.4 billion, +104% YoYSelling and distribution expenses: N9.8 billion, +56% YoYOther income: N3.7 billion, +813% YoYOperating profit: N104.7 billion, +117% YoYNet finance costs: N15.1 billion, +608% YoYProfit before tax: N62.4 billion, +36% YoYNet profit after tax: N55.8 billion, +38% YoYEarnings per share: N3.10, +38% YoYTotal assets: N1.08 trillion, +1.1% YTDCash and cash equivalents at the end of the period: N56.5 billion, +12% YoY

 What you should know

The major source of revenue for the group during the quarter was the sale of fortified sugar. The group recorded N198 billion from the sale of fortified sugar, representing a 221% YoY increase from the N61.6 billion posted in Q1 2023.

The group also recorded N80.6 billion from the sale of bakery flour during the quarter, in contrast with the N29.6 billion posted in Q1 2023.

The major source of increase in sales cost was raw materials, as the group expended N222.8 billion on raw materials, marking a 179% increase from the N79.9 billion spent on raw materials in Q1 2023.