Why BUA Foods’ revenue hit trillion-naira mark amid soaring inflation
By Mary Adenike
BUA Foods, a major food manufacturer in Nigeria, saw its revenue for last year double, hitting the one trillion-naira mark for the first time since 2020.
According to the company’s latest earnings report, an increase in the sales volume of pasta, sugar, and flour led to the surge in revenue. It reported a growth in after-tax profit to N274.9 billion from N112.1 billion in 2023.
The country’s inflation rate quickened to 34.8 percent in December from 28.92 percent a year earlier, putting more pressure on consumers’ purchasing power.
“Revenue grew by 109.3 percent year-on-year to N1.53 trillion in 2024 from N729.44 billion. This was due to a year-on-year increase of 74 percent in sugar to N733.8 billion, 172 percent in flour to N589.5 billion, and 125 percent in pasta to N197.6 billion,” the company said.
“We are delighted to report an exceptional performance in 2024. Despite significant macroeconomic challenges, our business navigated the resulting impact on supply chain costs and foreign exchange losses effectively,” Ayodele Abioye, managing director at BUA Foods, said in the report.
He added that the cumulative impact of the company’s expansion strategy has enabled its capability to fulfill increased demand from its customers and enhanced internal operational efficiencies.
“BUA Foods achieved an aggregate volume growth of 18 percent across all divisions. This performance has further reinforced our market position and industry leadership.”
A breakdown of the report showed that the rise in sugar revenue was due majorly to price adjustments within the period. However, the volume sold declined by 12 percent to 556,396 tons within the period.
“The growth in flour revenue is due to both volume increase and price adjustment within the period. Contribution margin also increased to 38 percent from 30 percent for the same period last year due to higher selling price,” it added.
Pasta contributed 13 percent to the revenue as against 12 percent in 2023 as a result of high demand as there was a 24 percent increase in production volume to 160,867 tons.
