BUA Foods reported its 2023 9M results showing pre-tax profits grew by 50% year on year, reaching 111.402 billion.

Key highlights 9M 2023 vs 9M 2022
Revenue: N524.428 billion +80.95% YoY
Cost of sales: N340.648 billion +74.12% YoY
Gross Profit” N183.780 billion +95.15% YoY
Administrative expenses: N7.913 billion +76.27% YoY
Selling and Distribution expenses: N20.273 billion +95.81% YoY
Operating profit: N156.883 billion+94.49% YoY
Finance cost: N12.200 billion +90.75% YoY
Foreign Exchange loss: N33.281 billion
Profit for the period: N105.618 billion +53.60% YoY
Earnings per share: N5.87 +53.66% YoY
Cash and short-term deposits: N82.959 billion +157.93%.
Total Assets: N757.846 billion +24.80%
Retained earnings: N247.522 billion +11.04%

More Insights:
BUA Foods recorded impressive growth in both revenue and profit, even in the face of rising costs and foreign exchange losses, maintaining healthy profit margins.

The substantial growth in pre-tax profit can be directly attributed to the increase in revenue, primarily driven by increased sales across various product segments, especially fortified sugar and pasta.
Moreover, the gross profit showed substantial growth, surpassing both the increase in revenue and the rise in the cost of sales, signalling a positive outlook for the company’s profitability.
Although the company did incur a substantial foreign exchange loss, it managed to achieve a significant increase in profit for the period, highlighting its ability to offset losses and sustain overall profitability.