BUA Foods Plc has recorded a growth of 96.43 per cent as the best performing consumer stock on the Nigeria Exchange in seven months.
The company, which is Nigeria’s third largest publicly listed company has released its half year 2024 earnings, beating analysts’ expectations on both the top and bottom lines as its stock makes a ton of sense to investors while peer rivals have capitulated to macroeconomic headwinds.
Restructuring and merger of all its five business divisions and conversion to Plc and the introduction of new products combined with hedging against foreign currency risk have helped drive better-than-expected results and upside in stock performance.
Reviewing the performance of listed consumer stock, showed that Unilever Nigeria posted year-to-date (YTD) returns of 21.28 per cent as at July 31, 2024, while Flour Mills of Nigeria achieved a growth of 39.18 per cent.
Meanwhile, NASCON Allied Industries lost 39.81 percent, Nestle Nigeria declared 24.55 percent loss, Nigerian Breweries down by 22.22 percent, Dangote Sugar Refinery posted a loss of 34.82 percent, International Breweries declined by 12.50 percent, and Guinness Nigeria down by 8.33 percent in the period under review.
During this period, BUA Foods said it has made significant strides in executing its strategic plans, successfully launching new products, specifically, macaroni, premium pasta and semolina to meet the yearnings of its customers.
BUA Foods diversified portfolio and expansion into new markets impacted revenue growth while strengthening its partnership with key stakeholders. Expectedly, sales surged 109.51 percent to N672.39 billion as at June 2024.
The company’s profit after tax (PAT) surged by 414.54 percent to N130.93 billion as at June 2024, making it the most profitable consumer goods firm in Nigeria even amid a difficult business environment.
The managing director of BUA Foods, Engr. Ayodele Abioye said, “the first half of the year has been one of significant resilience and achievements for our company. We attained a robust financial performance, with total revenue increasing by 110 per cent to N672.3 billion compared to the same period last year.
“During this period, we have made significant strides in executing our strategic plans, successfully launching new products, specifically, macaroni, premium pasta and semolina to meet the yearnings of our customers.”
Abioye noted that “our diversified portfolio and expansion into new markets impacted revenue growth while strengthening our partnership with key stakeholders. We also maintained a strong focus on cost optimization, resulting in sustained margins and profitability.”
Looking ahead, he stated that “we remain confident in our ability to navigate the challenges and opportunities in the market. We will continue to leverage our strong and orchestrated supply chain system to deliver a great financial performance in line with our strategic vision for sustainable growth and value creation for all stakeholders.”
