BUA Foods Plc - Full Year 2022 Audited Results
NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG
EARNING PRESS RELEASE
Regulated Information
Lagos, 3rd April 2023 - BUA Foods delivers strong performance as 2022 full year revenue rose by 26% to N418.3bn
Despite economic headwinds, BUA Foods Plc sustained her leadership position as the most profitable Foods and FMCG company listed on the NGX with a Profit Before Tax growth 38% to N107.2 Billion for Full Year 2022.
All other performance indicators are also on an upswing as earnings per share increased by 20% from previous year. This will undoubtedly boost shareholders return on investment with proposed dividend for 2022 being N4.50k (2021: N3.50k). Additionally, profit after tax surged to N91.3bn representing an increase of 31% from N69.7bn posted for the same period in 2021.
Key Financial Highlights
Group | Company | |||||||||||||
In thousands of naira | FY 2022 | FY 2021 | Δ | FY 2022 | FY 2021 | Δ | ||||||||
Revenue | 418,347,770 | 333,272,234 | 26% | 300,877,115 | 230,517,695 | 31% | ||||||||
Cost of Sales | 285,555,236 | 230,312,612 | 24% | 219,137,085 | 161,234,006 | 36% | ||||||||
Gross Profit | 132,792,534 | 102,959,622 | 29% | 81,740,029 | 69,283,689 | 18% | ||||||||
Gross Margin (%) | 31.8% | 30.9% | 90bps | 27% | 30% | -300bps | ||||||||
Selling and distribution | 14,185,483 | 10,135,699 | 40% | 10,743,161 | 7,412,040 | 45% | ||||||||
expenses | ||||||||||||||
Administrative expenses | 18, 733,919 | 14,626,871 | 28% | 16,840,058 | 12,477,991 | 35% | ||||||||
Total operating expenses | 32,919,403 | 24,762,570 | 33% | 27,583,219 | 19,890,031 | 39% | ||||||||
Opex to Income (%) | 7.9% | 7.4% | 50bps | 9.2% | 8.6% | 60bps | ||||||||
Operating Profit | 117,492,293 | 79,894,875 | 47% | 114,036,110 | 80,089,697 | 42% | ||||||||
Operating profit margin | 28% | 23% | 500bps | 38% | 35% | 300bps | ||||||||
Other income | 15,242,660 | 1,554,540 | 980% | 57,502,799 | 30,552,756 | 88% | ||||||||
Finance cost- net | 8,682,060 | 2,155,627 | 303% | 7,900,267 | 1,471,651 | 437% | ||||||||
Profit before income tax | 107,229,702 | 77,468,721 | 38% | 104,555,312 | 78,347,519 | 34% | ||||||||
PBT Margin (%) | 26% | 23% | 300bps | 35% | 34% | 100bps | ||||||||
Income Taxes | 15,885,684 | 7,700,636 | 106% | 15,885,684 | 7,700,636 | 106% | ||||||||
Effective tax rate (%) | 15% | 10% | 490bps | 15% | 10% | 500bps | ||||||||
Profit for the period | 91,344,018 | 69,768,085 | 31% | 88,669,628 | 70,646,883 | 26% | ||||||||
Earnings Per share (Kobo) | 5.07 | 4.24 | 20% | 4.93 | 4.29 | 15% | ||||||||
Return on Equity (%) | 40% | 35% | 14% | 39% | 35% | 11% | ||||||||
Return on Assets (%) | 15% | 12% | 25% | 15% | 12% | 25% | ||||||||
Total assets | 607,224,625 | 593,469,515 | 2.3% | 589,193,153 | 582,673,898 | 1.1% | ||||||||
Total equity | 230,961,332 | 200,718,673 | 15.1% | 228,161,077 | 200,592,804 | 14% | ||||||||
Total liabilities | 376,263,289 | 392,750,842 | -4.2% | 361,032,076 | 382,081,094 | -6% | ||||||||
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BUA Foods Plc - Full Year 2022 Audited Results
NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG
Commenting on the results, Engr. Ayodele Abioye, the Managing Director, said:
"BUA Foods Plc continued to maintain her leading position as the most profitable Foods and FMCG listed company in Nigeria with PBT of N107.2 Billion, a growth of 38% on prior year. This is despite the unending disruption of the business climate with high input costs, currency devaluation resulting in increasing operational cost.
We remain resolute to navigate the numerous business headwinds to continue delivering double digit growth with sustained focus on our market expansion strategy across our business segments. Delivering long term values to all our stakeholders as we continue to nourish lives remains cardinal".
Key Highlights of Group performance.
Revenue grew by 26% y-o-y to ₦418.3 billion in FY 2022 (FY 2021: ₦333.2 billion). This was due to
- y-o-yincrease of 32% in Sugar to ₦274.4 billion (FY 2021: ₦209.4 billion), 23.8% in Flour to ₦85.9 billion (FY 2021: ₦69.4 billion), and 5% in Pasta to ₦57.4 billion (FY 2021: ₦54.4 billion).
Increase in cost of sales (+24%) to ₦285.6 billion in FY 2022 (FY 2021: ₦230.3 billion) was driven by an increase in raw materials cost and energy cost. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in higher cost of production.
Gross profit increased by 29% to ₦132.8 billion in FY 2022 (FY 2021: ₦103 billion) even as gross
profit margin appreciated by 90bps to 32% in FY 2022 (9M 2021: 31%) due to the slight selling price adjustment within the year.
Selling and distribution expenses increase by 40% to ₦14.2 billion in FY 2022 (FY 2021: ₦10.1 billion) due to huge increase in cost of diesel within the period.
Administrative expenses also increased by 28% to ₦18.7 billion in FY 2022 (FY 2021: ₦14.6 billion) driven majorly by the increase in general expenses (132.5%) to ₦5.4 billion in FY 2022 (FY 2021: ₦2.3 billion) and travels and other transportation fees.
Total operating expenses increased by 33% to ₦33.9 billion in FY 2022 (FY 2021: ₦24.7 billion) on the back of significant increase in selling and distribution cost along the supply chain to customers.
Operating profit grew by 47% to ₦117.5 billion in FY 2022 (FY 2021: ₦79.8 billion) benefitting from top line growth driven by price adjustment and our export sales. Operating profit margin appreciated by 500bps to 28% in FY 2022 (FY 2021: 23%).
Profit before tax increased significantly by 38% to ₦107.2 billion in FY 2022 (FY 2021: ₦77.5 billion) while sustaining her double digit in profit before tax margin at 26%. This is the second year in a row with 2021 profit before tax margin at 24%.
Profit after tax grew by 31% to ₦91.3 billion in FY 2022 (FY 2021: ₦69.7 billion). while the Earning per Share (EPS) grew by 20% to N5.07 in FY 2022 from N4.24 in the corresponding period.
Total assets increased by 2.3% to ₦607.2 billion as of FY 2022 (FY 2021: ₦593.5 billion) driven largely by strategic transactions in trade and other receivables (+129% at ₦119.3 billion) which are all short term at reasonable fair value.
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BUA Foods Plc - Full Year 2022 Audited Results
NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG
Total liabilities decline by 4.2% to ₦376.3 billion as of FY 2022 (FY 2021: ₦392.8 billion). This was
driven mainly by 10% reduction in borrowings now at ₦207.0 billion (FY 2021: ₦241.2.billion)
Total equity increased by 15.1% to ₦230.9 billion as of FY 2022 (FY 2021: ₦200.7 billion) mainly due to a significant growth of 15.7% in retained earnings to ₦223 billion as of FY 2022 (FY 2021: ₦192.7 billion).
Operating divisional performance
Sugar division
The Sugar division contributed 66% to revenue in FY 2022 (FY 2021: 64%). Sugar Revenue grew by
31.7% to ₦275.1 billion in FY 2022 (FY 2021: ₦209 billion). This was driven by price adjustments and export sales within the period. Volume sold declined slightly by 1% to 607,218 tons within the period (FY 2021: 600,551 tons). The decline in production is attributable to energy disruptions within the period. Both Non-fortified sugar and molasses gained significant increase in sales while Fortified Sugar sales sustained her market share sale at ₦129 billion.
Flour division
The Flour division contributed 20.6% to revenue in FY 2022 (FY 2021: 16%). Revenue increased by
24% to ₦85.9 billion in FY 2022 (FY 2021: ₦69.4 billion). This was driven by adjustments in pricing and redesigned route to market distribution along the supply value chain. While volume sold declined by 16% to 170,820 tons within the period (FY 2021: 203,985 tons). The decline in production is attributable to energy challenges in Q2 2022. Revenue from bakery flour grew by 24.2% to ₦79.7 billion in FY 2022 (FY 2021: ₦64.1 billion) while wheat bran appreciated by 19.4% to ₦6.3 billion in FY 2022 (FY 2021: ₦5.2 billion).
Pasta division
The Pasta division contributed 14% to revenue in FY 2022 (9M 2021: 20%). Revenue increased by 5.3% to ₦57.2 billion in FY 2022 (FY 20201 ₦54.4 billion). This was driven by adjustments in pricing as volume sold amidst other innovative proactive sales initiatives within the year. While there was 18% drop in production volume to 111,578 tons (FY 2021: 136,859 tons) within the period. The decline in production is attributable to energy challenges in Q2 2022.
For further information, please contact:
Abdulrasheed Olayiwola
Chief Financial Officer
- Abdulrasheed.Olayiwola@buafoodsplc.com
M: 234 803 334 3914
Gabriel Fapojuwo
Investor Relations Manager
- Gabriel.Fapojuwo@buafoodsplc.com
M: +234 816 672 3182
BUA Foods Investor Relations: IR@buafoodsplc.com
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BUA Foods Plc - Full Year 2022 Audited Results
NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG
Consolidated and separate statements of profit or loss and other Comprehensive Income for the year ended 31 December 2022
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BUA Foods Plc - Full Year 2022 Audited Results
NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG
Consolidated and separate statements of financial position
As of 31 December 2022
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BUA Foods plc published this content on 05 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2023 16:10:07 UTC.