The board of BUA Foods Plc has presented its unaudited financial report for the first quarter ended March 31, 2025, indicator robust 24% growth in top line, helped by a significant contribution from the sale of rice and flour, just as there was an even more significant 124% leap in net profit for the period.
According to the result presented to the Nigerian Exchange Limited, revenue rose to ₦442.1bn, from ₦356.9 billion in the corresponding period of 2024, driven by substantial increases in revenue from Flour, contributed ₦176.2bn, Pasta rose 12% to ₦41.5bn, and rice recorded a remarkable 1617% to ₦13.02bn. Sugar sales revenue fell by a slight 11% quarter-on-quarter to ₦211.3bn from ₦238.2bn in the same period of last year.
Cost of sales rose to ₦281.158bn, compared to ₦241.503bn, leaving a Gross profit of ₦160.91bn, a 39 per cent increase compared to ₦115.42bn in Q1 2024, leading to an improved gross profit margin of 36.4%, from 32.3% in the prior quarter.
Total operating expenses for the period increased by 56% to ₦22.39bn, compared to the ₦14.37bn reported in the first three months of 2024, due to increases in selling and distribution expenses which rose 13% to ₦11.08bn, driven by logistics costs, and administrative expenses up 147% to ₦11.32bn.
Despite this increase in operating expenses, BUA Foods achieved a substantial growth of 124% in profit after tax (PAT) to ₦125.28bn, compared to ₦55.82bn in Q1 2024, following which Earnings per Share (EPS) grew significantly by 125% to ₦6.96 from ₦3.10 in the corresponding period.
Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, expressed satisfaction that the company is beginning the 2025 financial year “on a strong note, as our business continued to demonstrate resilience and adaptability amidst a still-evolving macroeconomic landscape. Despite operating in a high-cost environment, our proactive supply chain measures and improved internal efficiencies enabled us to sustain strong operational momentum.”
The company’s ongoing investments in production capacity, product/package innovation and route-to-market development, he said “continue to impact our results positively, enabling fulfilment of customer and consumer demand.”
Speaking on his outlook for the business, he said BUA Foods remains “focused on deepening our market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025.”
