BUA Foods has reported an increase in revenue for the 2024 financial year, with sales from its Sugar division accounting for 48 per cent of total earnings.
This comes amid Nigeria’s escalating food inflation, which surged to 39.84 per cent in December 2024, a rise from 39.93 per cent recorded in December 2023, according to the National Bureau of Statistics (NBS).
BUA Foods’ earnings report showed that revenue from its Sugar division grew by 74 per cent to N733.8bn in 2024 from N422.8bn in 2023, primarily driven by price adjustments.
However, the company experienced a 12 per cent decline in sales volume, which fell to 556,396 tons from 635,519 tons the previous year. The drop in volume reflects the impact of inflation on consumer purchasing power and production constraints.
The flour division emerged as the second-largest contributor to revenue, accounting for 39 per cent of total sales in 2024, up from 30 per cent in 2023. Flour revenue surged by 172 per cent to N589.5bn, driven by both higher sales volume and price increases. The contribution margin improved to 38 per cent from 30 per cent, underscoring the effect of inflation-driven price adjustments.
Similarly, the pasta division contributed 13 per cent to total revenue in 2024, up from 12 per cent in 2023. Revenue from Pasta sales rose by 125 per cent to N197.6bn, with production volume increasing by 24 per cent to 160,867 tons from 129,276 tons in 2023.
The company attributed the revenue boost to heightened demand despite inflationary pressures affecting household budgets.
The rice division also recorded notable growth, with revenue jumping 183 per cent to N5.79bn from N2.04bn in 2023. However, the company acknowledged persistent challenges in the paddy supply chain, which have hindered optimal production. In response, BUA Foods has introduced a new paddy supply and procurement strategy to bolster operations and enhance performance in 2025.
Overall, BUA Foods’ total revenue climbed by 109.3 per cent year-on-year to N1.53trn in 2024, compared to N729.44bn in 2023. The substantial increase was primarily driven by the sugar, flour, and pasta divisions, which collectively experienced double- and triple-digit revenue growth.
Despite the impressive revenue gains, the company faced mounting cost pressures. The cost of sales surged by 110 per cent to N984.98bn in 2024 from N468.98bn the previous year, mainly due to rising raw material and energy costs.
The continued devaluation of the Naira against the US Dollar further exacerbated cost pressures, making imported inputs more expensive and straining profit margins.
Commenting on the results, the Managing Director, Engr. Ayodele Abioye, said the results underscored the company’s ability to navigate challenges with agility and its resilience, as it continues to create value for all stakeholders.
“We are delighted to report an exceptional performance in FY 2024. Despite significant macroeconomic challenges, our business navigated the resulting impact on supply chain costs and foreign exchange losses effectively”.
“The cumulative impact of our expansion strategy has enabled our capability to fulfil increased demand from our customers and enhanced internal operational efficiencies.
BUA Foods achieved an aggregate volume growth of 18 per cent across all divisions. We hit a milestone revenue of ₦1.53tn, reflecting a 109 per cent growth, while profit after tax surged by 145 per cent to N274.95bn. This performance has further reinforced our market position and industry leadership”.
“Looking ahead with optimism, coupled with stability in the macro-economic environment, we would continue to focus our operations and strategic investment initiatives towards addressing food supply challenges.
” Also, with the concerted efforts of our board, management and frontline associates, we aim to deliver a strong performance with sustained value creation for all stakeholders in line with our north-star objectives.”
As food inflation continues to rise, BUA Foods is navigating a complex economic landscape marked by currency depreciation, high production costs, and shifting consumer demand. The company’s ability to adjust pricing strategies while sustaining production efficiency will be key to maintaining profitability in the coming year.
