BUA Foods posts $647 million in revenue in nine months, doubles earnings

Oluwatosin Racheal Alabi -

Key Points

  • BUA Foods reports a 104% increase in revenue, reaching ₦1.07 trillion ($647 million).
  • Profit after tax surged by 91% to ₦201.38 billion ($121.7 million).
  • Sugar, flour, and pasta sales drive strong revenue growth.

BUA Foods Plc, led by Managing Director Ayodele Abioye, achieved great revenue growth in the first nine months of 2024, posting a 104-percent rise to N1.07 trillion ($647 million) compared to the same period last year. This strong performance was largely driven by increased sales of the company's core products — sugar, flour, and pasta.

Sugar sales surged by 73 percent to N544.4 billion ($329 million), while flour sales skyrocketed by 160 percent to N389.9 billion ($235.6 million). Pasta sales also saw impressive growth, increasing by 131 percent to N134.8 billion ($81.5 million). Despite inflationary pressures and rising distribution costs, BUA Foods demonstrated operational efficiency, with gross profit increasing by 82 percent to N333.82 billion ($201.7 million) and profit after tax rising by 91 percent to N201.38 billion ($121.7 million).

Expansion plans and market leadership ambitions

BUA Foods is on track to achieve its 2025 goal of becoming the market leader in flour and pasta production. The company has formed strategic partnerships with Turkish and Italian firms to expand its production capacity, targeting an annual output of 900,000 metric tonnes of pasta and 2.5 million metric tonnes of flour.

“We continue to invest in our production capacity and product lineup to meet the growing demand for our products,” said Abioye, emphasizing BUA Foods’ commitment to addressing food supply challenges in Nigeria while maintaining a competitive edge in the market.

Focus on innovation and shareholder value

Product innovation and capacity expansion remain key pillars of BUA Foods’ strategy to enhance shareholder value and drive sustainable growth. The company’s ability to meet rising consumer demand, even in a challenging economic environment, positions it for continued success.

“We thank our stakeholders, particularly our customers and consumers, for their continued support and love for the brand,” Abioye added. “As we move forward, we are committed to nourishing lives and providing high-quality food products.”

BUA Foods' financial performance in the first nine months of 2024 reflects its strong market position and its focus on long-term growth through innovation and strategic partnerships.