BUA Foods Announces 24% Profit Growth Q2, 2024

In the second quarter of 2024, BUA Foods reported a pre-tax profit of N76.8 billion, a 24% increase year over year over the N61.8 billion pre-tax profit reported in the same period in 2023.

The firm reported sales of N315.5 billion in Q2 2024, a 79% year-over-year increase from N176.6 billion as of Q2 2023, according to its unaudited financial records for June 30, 2024.

The group’s second quarter helped its first quarter to generate N672.3 billion in half-year revenue, a 110% YoY increase from N320.9 billion in H1 2023.

BUA Foods posted an FX revaluation loss of N27.4 billion during the quarter under review.

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The group’s cost of sales outgrew the revenue, as it posted a N210.5 billion cost of sales in Q2 2024, marking a 106% YoY growth from N102.1 billion as of Q2 2023.

This led to a decline in gross margin, despite a 41% growth in gross margin to N105 billion, from N74.5 billion as of Q2 2023.

During the half-year, BUA Foods’ gross profit increased by 64% year-on-year to N218.4 billion in H1 2024, from N132.8 billion as of H1 2023.

In terms of gross margin, there was an 8.9 percentage-point decline year-on-year to 32.4%, from 41.3% in H1 2023.

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Key Highlights Q2 2024 vs Q2 2023

Revenue:                   N315.5 billion, +79% YoY

Cost of sales:             N210.5 billion, +106% YoY

Gross profit:               N105 billion, +41% YoY

Gross margin:             33%, -900 bps YoY

Operating profit:          N99.5 billion, +51% YoY

Operating margin:         32%, -500 bps YoY

Net finance income:      N4.7 billion, +212% YoY

Profit before tax:            N76.8 billion, +24% YoY

Profit after tax:                N75.1 billion, +37% YoY

Earnings per share:          N4.17, +37% YoY

Total assets:                     N1.1 trillion, +3% YTD