Drop in demand for sugar has dragged BUA Foods Plc’s sugar revenue down by 11 per cent from N238.2bn in 2024 to N211.3bn in the first quarter of 2025.
However improvement in sales from other divisions like flour, pasta and rice saved the group as revenue hit combined N442.1bn in the first three months of 2025, which is 24 per cent up from the N356.9bn recorded in Q1 of 2024.
This was revealed in the company’s unaudited financial statement for Q1 2025.
The company admitted, “The Sugar division contributed 48 per cent to revenue in 3M 2025 (3M 2024: 67 per cent). Sugar revenue declined by 11 per cent to N211.3bn in 3M 2025 (3M 2024: N238.2bn).
“The decrease in revenue is due majorly to low demand within the quarter.
“Volume sold decreased by 24 per cent to 149,060 tons within the period (3M 2024: 196,434 tons).”
Breakdown on revenue from sales showed that flour sales increased quarter on quarter by 145 per cent from N80.9bn in Q1 2024 to N176.2bn in corresponding period of 2025.
Pasta sales rose by 12 per cent to N41.5bn from N37.04bn in Q1 2025 while rice sales surged by 1,617 per cent to N13.02bn in Q1, compared to N0.78bn recorded in Q1 2024.
Cost of sales rose by 16 per cent to N281.16bn from N241.5bn in Q1 2024 while selling and distribution expenses increased by 13 per cent to N11.08bn in three months of 2025 from N9.77bn in the first three months of 2024.
The company blamed the surge in selling expenses on “increase in logistics expenses within the period.”
Similarly, administrative expenses rose sharply by 147 per cent to N11.32bn in Q1 2025 compared to N4.59bn in 2024.
However, profit after tax grew by 124 per cent to N125.28bn in first quarter of 2025 compared to N55.82bn.
Between December 2024 to March 2025, the group’s assets rose by 4.3 per cent to N1.14tn in Q1 of 2025, from N1.08tn recorded by 2024 ending.
“Our business continued to demonstrate resilience and adaptability amidst a still-evolving macroeconomic landscape.
“Despite operating in a high-cost environment, our proactive supply chain measures and improved internal efficiencies enabled us to sustain strong operational momentum,” said BUA Foods Managing Director, Engr. Ayodele Abioye.
