Est. read time: 2 minutes
BUA Overtakes Nestle Nigeria, 20 Others After N95.18bn PAT In 2023 H1
Fred Omotara, Lagos
BUA Foods Plc is now Nigeria’s most profitable consumer goods company after recording a net Profit After Tax (PAT) of N95.18billion in the first half of 2023.
This represents a massive 142.21% increase compared to N39.30 billion reported in the same period of 2022.
BUA disclosed this in its latest financial report published on the Nigerian Exchange.
BUA Foods’ performance in H1 of 2023 now means it has overtaken Nestle Nigeria as the most profitable company in the consumer goods category.
The 21 companies in the consumer goods category on the Nigerian Exchange include BUA Foods, Cadbury Nigeria, Champion Brew., Dangote Sugar Refinery, DN Tyre & Rubber, Flour Mills Nig., Golden Guinea Brew, Guinness Nig, Honeywell Flour Mill, International Breweries, McNichols, Multi-Trex Integrated Foods, Flour Mills, Nascon Allied Industries, Nestle Nigeria and Cadbury Nigeria PLC. Others are Nigerian Breweries, Nigerian Enamelware, PZ Cussons Nigeria, Unilever Nigeria, Union Dicon Salt, and Vitafoam.
BUA Foods’ impressive N95.18 billion profit in the six months dwarfs the other companies. For example, Vitafoam recorded a net profit of N3.69 billion in H1 2023, while Flour Mills of Nigeria recorded a net profit of N10.18 billion. PZ Cussons, another consumer company, recorded N15.35 billion; Dangote Sugar’s 3-month figure stands at N12.80 billion, and NASCO at N5.82 billion.
Firms such as Nestle Nigeria recorded a loss after tax of -N49.98 billion, Cadbury -N14.53 billion, Nigeria Breweries -N47.34 billion, and Guinness Nigeria -N18.16 billion, as they succumbed to foreign exchange losses resulting from the abrupt devaluation by the central bank.
The good news about BUA Foods is that most of its raw materials are sourced locally, making it less susceptible to foreign exchange devaluation losses.
BUA Foods has five business divisions contributing to Group earnings: Sugar, Flour, Pasta, Rice, and Edible Oil. Additionally, the company has eight plants and is the second-largest sugar refinery in Nigeria.