Bua Food Plc reported an increase in revenue of 26% year-on-year to N418.3 billion in FY 2022 from N333.2 billion recorded in the full year of 2021.
This information was disclosed in its earnings release statement, as seen by RateCaptain.
It stated that the increase in revenue was due to a year-on-year increase of 32% in sugar to N274.4 billion from the N209.4 billion recorded in the full year of 2021, 23.8% in flour to N85.9 billion from the N69.4 billion recorded in the full year of 2021, and 5% in pasta to N57.4 billion from the N54.4 billion recorded in the full year of 2021.
The company’s cost of sales grew by 24% to N285.6 billion in FY 2022 from N230.3 billion in the previous year. The increase in the cost of sales was driven by an increase in raw material costs and energy costs. The high input cost environment and further devaluation of the naira against the US dollar weighed heavily on the price of raw materials. This resulted in a higher cost of production.
Gross profit increased by 29% to N132.8 billion in FY 2022 from the N103.1 billion recorded in the previous year, even as gross profit margin appreciated by 90 basis points to 32% in FY 2022 (9M 2021: 31%) due to the slight selling price adjustment within the year.
Profit before tax increased significantly by 38% to N107.2 billion in FY 2022 from the N77.5 billion recorded in the previous year, while the double-digit profit before tax margin remained at 26%. This is the second year in a row with a 2021 profit before tax margin of 24%.
Profit after tax grew by 31% to N91.3 billion in FY 2022 from N69.7 billion in the previous trading year. While earnings per share (EPS) grew by 20% to N5.07 in FY 2022 from N4.24 in the previous period.
Total assets increased by 2.3% to N607.2 billion as of FY 2022 from N593.5 billion recorded in the previous year, driven largely by strategic transactions in trade and other receivables, which are all short-term and at reasonable fair value.
Total liabilities decline by 4.2% to N376.3 billion as of FY 2022 from N392.8 billion recorded in FY 2021. This was driven mainly by a 10% reduction in borrowings, now at N207.0 billion, from the N241.2 billion recorded in FY 2021.
The company saw an upswing as earnings per share increased by 20% from the previous year. This will undoubtedly boost shareholders’ return on investment, with the proposed dividend for 2022 being N4.50k, up from the N3.50k recorded in 2021.