BUA Foods 9-month PAT up 17.2%
BUA Foods has recorded a 20 per cent growth in revenues for the first nine months of this year with Profit After Tax up 17.2 per cent. The company says progress is being made to restart the rice business before the end of the year. Ayodele Abioye, Managing Director, BUA Foods Plc joins CNBC Africa to unpack their earnings report.
Tue, 08 Nov 2022 12:12:58 GMT
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AI Generated Summary
- BUA Foods reports a 20% growth in revenues and a 17.2% increase in profit after tax for the first nine months of the year, driven by the sugar, flour, and pasta divisions.
- The company faces challenges from rising input costs, energy costs, and environmental disruptions but remains committed to delivering double-digit growth.
- BUA Foods plans to focus on expanding its market footprint in West Africa, enhancing export operations, completing new plans for flour and pasta divisions, and investing in product diversification and retail market expansion.
Nigeria's leading food and agribusiness company, BUA Foods PLC, has announced impressive financial results for the first nine months of the year, with a 20% growth in revenues and a 17.2% increase in profit after tax. In a recent interview with CNBC Africa, Ayodele Abioye, the Managing Director of BUA Foods PLC, shared insights into the company's performance and strategic plans for the future. The company's strong performance was largely driven by the sugar, flour, and pasta divisions, which collectively contributed significantly to the revenue achieved during the period.
Abioye highlighted the challenges posed by the economic environment, including rising input costs, energy costs, and environmental disruptions such as flooding, which have impacted the company's operations. Despite these challenges, BUA Foods remains committed to delivering double-digit growth and has implemented resilience strategies to mitigate the impact of these headwinds.
Looking ahead, BUA Foods aims to focus on expanding its market footprint in West Africa and beyond, with a strategic emphasis on export markets. The company recently acquired a supporting export vessel to accelerate its export strategy, with a notable 200% growth in export operations recorded in the current year.
In addition to market expansion, BUA Foods is set to complete new plans for its flour and pasta divisions, increasing production capacity and solidifying its position as a leading producer in Nigeria. The company is also pursuing a back-end integration program supervised by the Sugar Development Council of Nigeria, aimed at enhancing its sugar production capabilities.
Furthermore, BUA Foods is investing in product diversification and retail market expansion, with initiatives set to launch in the first quarter of 2023. The company is committed to meeting customer demands by enhancing logistics operations and ensuring timely delivery.
In conclusion, BUA Foods' impressive financial performance, strategic expansion plans, and commitment to sustainability and customer satisfaction position the company as a key player in the food and agribusiness sector in Nigeria. With a strong focus on growth, innovation, and resilience, BUA Foods is well-positioned to continue its upward trajectory in the coming years.