BUA Foods Plc reached a record high in the equities market as investors sought positions despite its limited free float of 5.02%. While approximately 95% of the company's shares remain within the control of its founder and directors, BUA Foods maintains it has met the Nigerian Exchange Group’s (NGX) free float requirement.
Founder Abdulsamad Rabiu CFR, CON holds an 89.55% stake in BUA Foods on the local bourse, along with an additional indirect shareholding of 2.78% through BUA Industries Limited. Another key shareholder, Rabiu Isyaku, owns 2.63%, leaving only 5.02% available to other investors.
“BUA Foods Plc, with a free float value of N353,036,561,650 as at 31 December 2024, is compliant with the Nigerian Exchange Group’s free float requirements for companies on the Main Board,” BUA stated in its unaudited financial report submitted to the NGX.
On Friday, BUA Foods’ market value surged by approximately 12% due to strong market activity. The stock, which had declined by 10% the previous week, rebounded swiftly. Data from the NGX showed that BUA Foods’ share price jumped 11.9%, closing the week at N418 from N373.50. The company’s market capitalization increased to N7.524 trillion, based on its 18 billion outstanding shares.
Strong Earnings Growth in 2024
BUA Foods reported a 109.3% year-on-year revenue increase in 2024, reaching ₦1.53 trillion from ₦729.44 billion in 2023, driven by price adjustments and higher sales volumes.
Breaking down segment performance:
- Sugar revenue rose by 74% to ₦733.8 billion from ₦422.8 billion in 2023.
- Flour revenue surged by 172% to ₦589.5 billion from ₦216.7 billion.
- Pasta revenue climbed 125% to ₦197.6 billion from ₦87.8 billion.
The company’s cost of sales rose by 110% to ₦984.98 billion, primarily due to higher raw material and energy costs. The devaluation of the Naira against the U.S. dollar significantly impacted raw material prices, increasing production expenses.
Despite these rising costs, BUA Foods' gross profit increased by 108% to ₦541.71 billion from ₦260.46 billion. However, the gross profit margin slightly declined by 22 basis points to 35.5% from 35.7% in 2023 due to input cost pressures.
Rising Expenses and Operating Performance
Selling and distribution expenses grew by 33.4% to ₦39.83 billion, largely due to higher diesel costs. Administrative expenses also increased by 17.8% to ₦20.28 billion from ₦17.21 billion. In total, operating expenses climbed 28% to ₦60.11 billion, reflecting increased distribution costs.
Despite these higher expenses, operating profit rose 137.1% to ₦489.19 billion, benefiting from price adjustments and increased demand for flour and pasta products.
Finance charges increased by 15.1% to ₦21.65 billion due to additional loan drawdowns and higher banking transaction volumes.
Profitability Soars
BUA Foods achieved significant bottom-line growth, supported by strong revenue performance amid rising competition in a challenging economy. Pre-tax profit surged 167.3% to ₦289.07 billion from ₦108.14 billion in 2023, with the pre-tax profit margin improving by 411 basis points to 18.9%.
Net profit after tax soared 145.2% to ₦274.95 billion, up from ₦112.09 billion in the previous year, solidifying BUA Foods’ strong financial performance in 2024.
No comments:
Post a Comment