BUA Foods Q1'22 revenue up 28.3%
BUA Foods reported a 28.3 per cent growth in its first quarter revenue to 90 billion naira, driven by the 16 per cent growth in its sugar division, while profit after tax was up by 18.6 per cent. Ayodele Abioye, Managing Director of BUA Foods, joins CNBC Africa to discuss the drivers of the company’s results and more.
Fri, 13 May 2022 11:40:13 GMT
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AI Generated Summary
- BUA Foods reported a 28.3% revenue growth in Q1'22, driven by a 16% increase in the sugar division.
- The company's strategic actions and focus on expansion, including entering the rice business and acquiring new assets, have contributed to its success.
- Expansion plans in the flour and pasta divisions, along with efforts to explore all revenue streams, aim to sustain BUA Foods' strong financial performance.
Nigeria's leading food company, BUA Foods, has recently reported a 28.3% growth in its first quarter revenue, reaching 98 billion Naira. This impressive performance was primarily driven by a 16% growth in the sugar division, while the profit-after-tax saw a significant increase of 18.6%. Ayodele Abioye, the Managing Director of BUA Foods, attributes the company's success to a combination of strategic actions, resilience, and continuous improvement. BUA Foods' goal is to deliver value to stakeholders while promoting food security across the continent, starting with Nigeria.
Abioye expressed his satisfaction with the strong financial results posted at the end of 2021 and in the first quarter of 2022. He highlighted the company's commitment to maintaining resilience in the face of challenges, such as supply chain disruptions and energy shortages. The consistent growth across all product offerings reflects BUA Foods' internal efficiency improvements and strong business strategy.
The company's business segments have performed exceptionally well, with BUA Foods being one of the most capitalized companies in its segment on the Nigerian Exchange. Abioye mentioned plans to expand the rice business, with expectations of generating an additional 20% in revenue, amounting to approximately 70 billion Naira. The acquisition of new assets and vessels will enhance export operations and ensure timely delivery to customers.
Expansion plans are underway, with the introduction of new capacities in the flour and pasta divisions. These strategic actions are aimed at solidifying BUA Foods' position in the market and meeting the increasing demand from customers. Abioye emphasized the company's dedication to exploring all revenue streams to maintain strong financial performance in the short and long term.
In a recent interview with CNBC Africa, Ayodele Abioye shared insights on the factors driving BUA Foods' success and the strategies in place to sustain growth. The company's focus on continuous improvement, resilience, and strategic expansion plans have positioned it as a key player in the food industry. With a strong financial performance in the first quarter of 2022, BUA Foods is set to continue delivering value to stakeholders and driving innovation in the sector.
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