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BUA Foods’ earnings jump, driven by sugar, flour revenues



Revenues from Sugar and Flour segments lifted BUA Food’s   earnings to an impressive performance as the company announced a Profit After Tax of N91.34 billion in 2022, up from N69.77 billion reported in 2021.

Its audited financial statement for the year ended, December 31, 2022, shows that the company’s revenue jumped to N418.35 billion in the year under review, indicating a 26 per cent increase from N333.27 billion in 2021. However, the cost of sales rose by an almost equal percentage (23 per cent).

In addition, Profit Before Tax increased by 38.4 per cent to N107.23 billion in 2022 up from N77.47billion in 2021, as the Profit Before Tax margin increased by 25.6 in 2022 from 23.24 per cent in 2021 due to an increase in revenue.

Consequently, the Board of Directors has recommended an N4.50k dividend per ordinary share of 50 kobos each, higher than the N3.50k dividend paid in 2021. Thus, the group’s Earnings Per Share (EPS) improved to N5.07 in 2022, up from N4.22 in the corresponding period.

The audited account showed that revenue from the Sugar segment accounted for the bulk of the company’s earnings. Sugar (Non-fortified) accounted for N145.16 billion, representing an increase of 83 per cent from N79.15 billion in 2021, while Sugar (Fortified) accounted for N129.24 billion, a decline of 0.45 per cent from N129.84billion recorded in 2021.

An analysis of the result showed that the growth in BUA Foods’ sugar revenue was driven by price adjustments and export sales within the period.

The Flour division, specifically Bakery Flour revenue accounted for N79.68 billion, up from N64.19 billion in 2021, while Pasta raked in N57.24 billion in revenue up from N54.4 billion reported in 2021. In addition, sales from Wheat Bran rose 19.4 per cent to N6.26 billion in 2022, from N5.24 billion in the previous year.

Nigeria accounted for 86 per cent of the Group’s revenue as against 100 per cent in 2021, indicating that the company is making inroads into offshore markets.

In the period under review, the cost of sales jumped by 23 per cent (almost equal percentage with revenue) to N285.56 billion as against N230.3 billion in 2021 driven by a 23 per cent increase in the cost of raw materials which rose to N260.18 billion in 2022 from N211.21 billion in the previous year.

According to the result, “high input cost environment and further devaluation of the Naira against the dollar weighed heavily on prices of raw materials in nine months of 2022 and resulted in higher cost of production.”

The cost of raw materials accounted for 91.11 per  cent cost of sales in 2022 against 91.7 per cent in 2021. Similarly, sales and distribution expenses rose to N14.19 billion in 2022 from N10.14 billion in 2021 due to a huge increase in the cost of diesel within the period.

The period under review, gross profit rose 58 per cent to N132.79 billion from N102.96 billion, while total operating expenses increased by 33 per cent to N32.92 billion in 2022 up from N24.76billion in 2021 as a result of an increase in the cost of selling and distribution to customers.

However, operating profit grew by 47 per cent to N117.49 billion in 2022 from N79.89 billion in 2021, due to lower administrative expenses at N18.13 billion as against N14.63 billion in 2021.

Finance charges increase by 72.7 per cent to N8.72 billion in 2022 as against N5.05 billion reported in  2021, due to an efficient funding mix along business transactions.

Total assets increased by 2.32 per cent to N607.22billion in 2022 audited results from N593.46billion reported in the 2021 full financial year, driven largely by growth in trade and other receivables (+128per cent; 20 per cent of total assets).

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capital market

FG lists N4.214bn April savings bonds on NGX



The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

This was disclosed in the market bulletin signed by Godstime Iwenekhai, Head, Issuers Regulation Department of NGX.

According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 percent, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046 percent.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.

FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

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LCFE inducts 23 commodities brokers



As part of its capacity building functions, Lagos Commodities and Futures Exchange (LCFE), has onboarded and inducted another 23 Commodities Brokers, the fourth edition in the series, to increase the number of professionals to specialise in various asset classes in the Nigerian commodities ecosystem.

On the list of those inducted last week were the Managing Director, Dynamic Portfolio Limited, Mr Remi Lasaki and many Chief Executive Officers of stockbroking companies in Nigeria.

In his welcome address, LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale, urged the inductees join hands with The Exchange to build a virile commodities market that shall be beneficial to all.

“LCFE is working hard to build a market that will benefit the entire Capital Market and its brokers. Each broker can select a commodity and dedicate their focus on it, thereby enhancing your company’s wealth, your individual skill set and contributing to the growth of the Nigerian Economy.

“Together, let us seize this opportunity to build a vibrant and dynamic marketplace that unlocks new possibilities for investors, enhances economic prosperity, and positions Nigeria as a leader in commodities trading.

“The Exchange is actively engaging with the Securities and Exchange Commission to obtain approval for more products like Lithium, diamond and Oil and Gas commodities. Just yesterday, we signed an MOU with a Global Certification Agent Bureau Veritas to certify lithium and other Solid Mineral commodities to be traded on LCFE. Additionally, we have made significant strides in the Cashew ecosystem, signing an MOU with the Cashew Association of Nigeria (CAN), aggregators, and a major cashew processor.

“Eko Gold also represents a pioneering investment opportunity within our commodities ecosystem, leveraging stability and transparency to diversify options, attract capital, and create value across the value chain. LCFE is fully committed to supporting its growth and providing brokers with the tools and guidance needed for effective promotion of the asset classes,” said Akeredolu-Ale.

Corroborating him, the Chairman, Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, noted  LCFE was established for total transformation of commodities exchanges in Nigeria and boost the country’s Gross Domestic Product (GDP).

“The underpinning drive for establishing the exchange was the need to transform and reposition the commodities market and harness opportunities in the commodities ecosystem. This drive will enhance and crate value for all stakeholders in the ecosystem,” he said.

The newly elected President of Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, congratulated the inductees and advised them to uphold the ethical standard of the profession and operate with skills and integrity.

Akeredolu-Ale also congratulated the new board and management of Securities and Exchange Commission (SEC), under the new Director General, Dr Emomotimi Agada.

In July last year, the Pan African Exchange inducted 33 commodities brokers, including the first female office holder at Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie.

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Tinubu asks Senate to confirm four board members of SEC



President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC), the apex regulator of Nigeria’s Capital Market.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

The appointed members of the SEC are Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

While Agama was appointed as Director-General, Mr Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission.  Ajomale was appointed as Executive Commissioner (Operations) while  Hassan-Usman was appointed as Executive Commissioner (Corporate Services).

In April, President Tinubu approved the appointment of seven persons as members of the SEC pending their confirmations by the Senate. But, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

In the letter, the President explained that the appointment complied with the provisions of section (1) of the Investment and Security Act of 2007.

“Confirmation of appointment of the Director-General and Commissioners of the Securities and Exchange Commission.

“By the provision of sections 3 and 5 (1) of theInvestment and Securities Act 2007. I am pleased to present for confirmation by the Senate the under-listed four nominees as Director-General and Commissioners of Securities and Exchange Commission,” he said.

The president urged the lawmakers to expedite the screening and confirmation process.

The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.

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