Fakoyejo OlalekanBUA Foods revealed that its revenue for the financial year of 2022 rose by 26 per cent, with the company’s bottom line up by 31 per cent.
According to the financial records of BUA Foods, the firm largely owned by billionaire, Rabiu Abdulsamad, generated N418.34 billion turnover last year, surpassing the N333.27 billion grossed in 2021.
However, BUA Foods lost 68.25 per cent of its revenue to cost of sales, as the latter rose by 24 per cent to N285.55 billion in 2022, against the N230.31 billion spent on the production of its sugar, flour and pasta products.
In the earnings report, BUA Foods stated that its gross profit during the review period increased by 29 per cent year-on-year, as it closed 2022 with N132.79 billion, above the N102.95 billion recorded the previous year.
Also, the manufacturer disclosed that it recorded 31 per cent growth in its net profit, as it settled at N91.34 billion last year, compared to the N69.79 billion posted the year before.
Meanwhile, BUA Foods said the company suffered a decline in production volume due to energy disruption. The disruption resulted in a one per cent drop in sugar output, a 16 per cent in flour and an 18 per cent dip in pasta production.
In the statement breaking down the revenue generation, BUA Foods said: “The Sugar division contributed 66% to revenue in FY 2022 (FY 2021: 64%). Sugar Revenue grew by 31.7% to ₦275.1 billion in FY 2022 (FY 2021: ₦209 billion). This was driven by price adjustments and export sales within the period. Volume sold declined slightly by 1% to 607,218 tons within the period (FY 2021: 600,551 tons).
“The decline in production is attributable to energy disruptions within the period. Both Non-fortified sugar and molasses gained a significant increase in sales while Fortified Sugar sales sustained her market share sale at ₦129 billion.
“The Flour division contributed 20.6% to revenue in FY 2022 (FY 2021: 16%). Revenue increased by 24% to ₦85.9 billion in FY 2022 (FY 2021: ₦69.4 billion). This was driven by adjustments in pricing and redesigned route to market distribution along the supply value chain. While volume sold declined by 16% to 170,820 tons within the period (FY 2021: 203,985 tons).
“The decline in production is attributable to energy challenges in Q2 2022. Revenue from bakery flour grew by 24.2% to ₦79.7 billion in FY 2022 (FY 2021: ₦64.1 billion) while wheat bran appreciated by 19.4% to ₦6.3 billion in FY 2022 (FY 2021: ₦5.2 billion).
“The Pasta division contributed 14% to revenue in FY 2022 (9M 2021: 20%). Revenue increased by 5.3% to ₦57.2 billion in FY 2022 (FY 20201 ₦54.4 billion). This was driven by adjustments in pricing as volume sold amidst other innovative proactive sales initiatives within the year. While there was 18% drop in production volume to 111,578 tons (FY 2021: 136,859 tons) within the period. The decline in production is attributable to energy challenges in Q2 2022,” the statement reads.
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