Business
Energy disruption forces BUA Foods to cut sugar, flour production
BUA Foods, owned by billionaire, Rabiu Abdulsamad, was forced to cut production of its revenue-driven products, sugar, flour and pasta in 2022.
In an explanatory note seen by Ripples Nigeria on Wednesday, which accompanied BUA Foods financial statements for the period of 2022, the firm said energy issues disrupted its production.
This affected the volume of sales last year, with 607,218 tons of sugar sold last year, below the 600,551 tons sold the year before.
Flour production dropped by 16 per cent to 170,820 tons within the period in review. In 2021, the company had produced 203,985 tons.
Similarly, pasta production was cut by 18 per cent, ending 2022 with 111,578 tons, as against the 136,859 tons produced the year before.
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However, despite the decline in production of its products, BUA Foods reported 26 per cent year-on-year growth in total revenue for 2022, generating N418.34 billion, which is above the N333.27 billion turnover posted in 2021.
Also, Gross Profit closed last year with 29 per cent increase, as BUA Foods recorded N132.79 billion. This surpassed the N102.95 billion Gross Profit of 2021.
At the end of the year in review, BUA Foods said it recorded N91.34 billion profit after tax, which is 31 per cent growth when compared to the N69.76 billion net profit posted the year before.
Commenting on the earnings report, the Managing Director of BUA Foods, Ayodele Abioye, said the firm was able to squeeze out growth despite “the unending disruption of the business climate with high input costs, currency devaluation resulting in increasing operational cost. We remain resolute to navigate the numerous business headwinds,” part of the statement reads.
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