BUA Foods remains market leader in FMCG in Nigeria

BUA Foods has maintained leadership It is interesting to note that there is a new name at the top consumer goods Industry. In the fourth quarter of 2024, BUA Foods Plc generated net sales of N1.52 trillion.

By comparison, Nigerian Breweries generated revenue of N1.08 trillion; Nestle Nigeria, N958.81 billion; Dangote Sugar Refinery N665.68 billion; Guinness Nigeria, N259.18 billion, Unilever, N149.75 billion; Cadbury, N129.19 billion, and Nascon Allied Industries, N120.38 billion.

For all it’s worth, BUA Food has been growing sales and profit faster than the average inflation rate and it is expected the company will continue to magnify earnings, and a price to earnings ratio (P/E) ratio of 27.38 makes it a growth stock to own due to its diversified revenue base.

Consumer firms all recorded double digit growth in sales as they relied on hikes in the price of key products to compensate for rising input costs in a challenging macro environment.

However, for nearly all of them, the top line gains (sales) were wiped out by huge foreign exchange revaluation losses that undermined operating margin.

BUA Foods surmounted the foreign exchange revaluation loss headwinds as it posted profit after tax (PAT) of N274.15 billion, the largest in the industry.

That compares with the profits of Unilever, N15.90 billion and Nascon Allied, N15.58 billion.

Nestle Nigeria, Nigerian Breweries, Guinness, Dangote Sugar, Cadbury earnings all fell of the cliff as they posted after tax loss of N164.59 billion; N144.88 billion; Guinness, N302.75 million; Dangote Sugar Refinery, N192.16 billion, and Cadbury, N10.42 billion respectively.

BUA Foods  is one of the top sugar producers in West Africa, boasting a refining capacity of 1.50mn metric tons.

The company is engaged in the comprehensive production, milling, processing, and refining of sugar and its by-products, including bagasse, molasses, and mud cakes. In the southeastern region, the company operates a flour milling facility with an annual capacity of 500.00 MT (metric tons).

BUA Foods Plc (BUAFOODS) is a market leader in the food and Fast-Moving Consumer Goods (FMCG) business. It processes, manufactures, and distributes food produce across Nigeria. The company’s business operations comprise five divisions, including Sugar, Flour, Pasta, Rice, and Edible Oils. The company is a member of the BUA Group, a leading conglomerate in Nigeria with business interests spread across the food and infrastructure sectors.

Currently, BUAFOODS’ products include fortified and non-fortified industrial sugar, flour, and pasta. The company kickstarted the processing, manufacturing, and distribution of rice in Q3:2023, while its  edible oils segment is due to commence by 2024.