BUA Foods FY'23 revenue up 74% despite headwinds
BUA Foods revenues rose 74 per cent year-on-year, for the full year 2023 with profit after tax up 22 per cent. The sugar division tops the operating segment with a 58 per cent contribution to revenue. Ayodele Abioye, Managing Director of BUA Foods says the performance is solid in the face of an unending challenging macro environment. He joins CNBC Africa to unpack the numbers and plans for this year.
Thu, 08 Feb 2024 12:35:32 GMT
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AI Generated Summary
- BUA Foods reports a 74% increase in revenues and 22% rise in profit after tax for FY'23, with the sugar division leading revenue contributions.
- Strategic focus on expanding production platforms, capturing market demand, and optimizing product offerings drives growth in flour, sugar, and pasta segments.
- Resilience in navigating challenges, such as foreign exchange losses and rising input costs, underscores BUA Foods' unique strategic business model and commitment to stakeholder value.
BUA Foods, a leading food production company in Nigeria, has reported a remarkable 74% increase in revenues for the full year 2023, with a 22% rise in profit after tax. The sugar division emerged as the top revenue contributor, accounting for 58% of the company's total revenue. Ayodele Abioye, the Managing Director of BUA Foods, attributes this solid performance to the company's strategic focus on expansion and productivity. Despite facing challenges in the macroeconomic environment, such as foreign exchange losses and rising input costs, BUA Foods has displayed resilience and continues to deliver exceptional results. The company's success can be attributed to its investment in manufacturing platforms, particularly in flour and pasta divisions, which have significantly increased production capacity and driven revenue growth. In addition to flour and sugar, pasta has also seen substantial growth in volume and value, contributing to the company's impressive financial performance. Ayodele Abioye emphasizes that BUA Foods operates on a unique strategic business model that has enabled them to navigate challenges effectively. By focusing on expanding production platforms, capturing market demand, and optimizing their product offerings, BUA Foods has solidified its position as a market leader in Nigeria. The company's ability to manage supply chain complexities and fulfill stakeholder expectations has been key to its success. With plans to further commercialize their rice segment and achieve 30-60% capacity utilization in the medium term, BUA Foods is poised for continued growth and expansion. The company is also exploring innovative partnerships, such as a community-driven agriculture initiative in Kwara State, to enhance their sourcing capabilities and ensure a sustainable supply of raw materials. As BUA Foods looks ahead to the new year, they remain committed to delivering value to their stakeholders and capitalizing on growth opportunities in the food production industry. Despite the volatile economic landscape, BUA Foods' resilient performance and strategic vision position them as a market leader and a catalyst for industry growth.
