BUA Foods Plc kicked off the 2025 financial year with a stellar performance, doubling its profit after tax by 124.5% year-on-year to ₦125.3 billion, up from ₦55.8 billion in Q1 2024. This impressive growth was driven by strong topline expansion, better cost control, and significant reductions in finance expenses.
Revenue grew by 23.9% to ₦442.1 billion in the first quarter of 2025, compared to ₦356.9 billion in the same period last year. This topline performance reflects resilient demand across the company’s food product lines and improvements in distribution and pricing strategy.
Gross profit increased to ₦160.9 billion, a 39.4% rise from ₦115.4 billion in Q1 2024, underscoring better input cost management and operational efficiencies. Operating profit climbed 32.7% to ₦138.9 billion, supported by the strong gross margin and modest growth in operating expenses.
Notably, profit before tax surged to ₦136.4 billion, more than doubling from ₦62.4 billion a year earlier, reflecting improved core operations and enhanced financial discipline. Earnings per share rose to ₦6.96, up from ₦3.10, signaling stronger returns to shareholders.
Finance income increased to ₦741.8 million, while finance costs fell sharply to ₦3.8 billion from ₦15.2 billion, thanks to more efficient debt structuring and repayment. This cost reduction alone contributed significantly to the company’s bottom-line growth. Additionally, BUA Foods recorded a foreign exchange gain of ₦485.7 million, reversing a steep FX loss of ₦27.3 billion in Q1 2024, as the company benefited from a more favorable currency environment.
However, operating expenses rose: administrative costs more than doubled to ₦11.3 billion (from ₦4.6 billion), and selling and distribution expenses edged up to ₦11.1 billion from ₦9.8 billion, partly due to inflationary pressures and expanded logistics efforts.
On the balance sheet, BUA Foods showed continued stability. Total assets increased slightly to ₦1.14 trillion, up from ₦1.1 trillion in December 2024. More importantly, shareholders’ equity grew to ₦554.3 billion, a notable improvement from ₦429.1 billion, reflecting stronger retained earnings and a reinforced capital base.
Key Highlights:
- PAT: ₦125.3bn (+124.5% YoY)
- Revenue: ₦442.1bn (+23.9% YoY)
- Gross Profit: ₦160.9bn (+39.4%)
- Operating Profit: ₦138.9bn (+32.7%)
- PBT: ₦136.4bn (+118.6%)
- EPS: ₦6.96 (vs. ₦3.10)
- Finance Costs: ₦3.8bn (↓75%)
- FX Gain: ₦485.7m (vs. ₦27.3bn loss)
- Total Assets: ₦1.14tn (↑ from ₦1.1tn)
- Shareholders’ Equity: ₦554.3bn (↑29.2%)
Conclusion:
BUA Foods’ Q1 2025 results reaffirm its leadership in Nigeria’s consumer goods space, with strong earnings momentum, prudent financial management, and improved cost efficiency. While rising administrative expenses warrant close monitoring, the company's robust profitability, stronger capital position, and lower leverage provide a solid foundation for sustained growth in subsequent quarters.
How well do narratives help inform your perspective?
Disclaimer
The user WaneInvestmentHouse holds no position in NGSE:BUAFOODS. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.