BUA FOODS : EARNINGS PRESS RELEASE Q3 2023 UNAUDITED

BUA Foods Plc - Q3 2023 Unaudited Results

NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG

EARNING PRESS RELEASE

Regulated Information

Lagos, 31st October 2023

9M 2023 Results- BUA Foods sustain strong performance as revenue rose by 81% to N524.4 Billion

Despite the numerous political and economic headwinds impacts experienced in the year, BUA Foods Plc sustained her leadership position in the Foods and FMCG company listed on the NGX with a Profit After Tax (PAT) growth of 54% to N105.6 Billion for the nine-month2023.

All other performance indicators were sustained at double digits growth even as earnings per share increased by 53.7% relative to same period in 2022.

Key Financial Highlights

			Group
In thousands of naira	YTD SEPT 2023		YTD SEPT 2022	Δ
Revenue	524,429,118		289,819,825	81.0%
Cost of Sales	340,647,942		195,641.326	74.1%
Gross Profit	183,780,175		94,178,499	95.1%
Gross Margin (%)	35.0%		32.50%	250bps
Selling and distribution expenses	20,272,583		10,353,073	95.8%
Administrative expenses	7,912,564		4,488,851	76.3%
Total operating expenses	28,185,147		14,841,924	89.9%
Opex to Income (%)	5.37%		5.12%	25bps
Operating Profit	156,882,999		80,664,433	94.5%
Operating profit margin	29.9%		27.8%	210bps
Other income	1,287,970		1.327,858	-3.0%
Finance cost	12,200,361		6,396,131	90.7%
Foreign Exchange Loss	33,280,647		0	-
Profit before income tax	111,401,991		74,268,302	50%
PBT Margin (%)	21.2%		25.6%	-440bps
Income Taxes	5,784,361		5,507,047	5.0%
Effective tax rate (%)	5.2%		7.4%	-220bps
Net Profit for the period	105,617,630		68,761,255	53.6%
Earnings Per share (Kobo)	5.87		3.82	53.7%
Return on Equity (%)	41,3%		29.8%	1,150bps
Return on Assets (%)	13.9%		11.3%	260bps
Total assets	757,845,877		607,224,625	24.8%
Total equity	255,578,966		230,961,336	10.7%
Total liabilities	502,266,911		376,263,289	33.5%

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BUA Foods Plc - Q3 2023 Unaudited Results

NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG

Commenting on the results, Engr. Ayodele Abioye, the Managing Director, stated:

"We are pleased to report a strong and successful fiscal YTD performance for BUA Foods having delivered strong top and bottom line returns across business portfolios and key financial metrics. We have experienced double-digit growth within the period with revenue YTD up by 81% and PAT by 54%, underscoring the strength of our business strategy, dedication of our exceptional team and support of our strategic partners. These were achieved despite the complexities presented by rising inflation, high interest rate resulting in pressure on consumer income, and Naira depreciation which led to FX losses.

Clearly, BUA Foods Plc. has not only weathered the storm but has thrived. We have strategically navigated challenges by embracing change, doubling down on efficiency, and carefully optimizing costs without conceding our commitment to quality and service. Moreover, our focused investments in expansion projects is on course, providing a solid foundation for further growth and competitiveness.

We remain excited about the prospects that lie ahead despite the headwinds, and confident in our business resilience for a sustained positive momentum."

Key Highlights of Group performance.

Revenue grew by 81% y-o-y to ₦524.4 billion in 9M 2023 (9M 2022: ₦289.8 billion). This was due

to a y-o-y increase of 74.2% in Sugar to ₦315.2 billion (9M 2022: ₦180.9 billion), 126% in Flour to

₦149.9 billion (9M 2022: ₦66.2 billion), and 37% in Pasta to ₦58.3 billion (9M 2022: ₦42.7 billion). New division Rice business contributed ₦995 million to the top line same period. Across the business divisions there were significant growth in volume sold impacting the overall performance as well. Key drivers include slight price adjustments to reflect high input costs, volume growth and gradual commissioning of our expansion projects.

Increase in cost of sales (+74.1%) to ₦340.6 billion in 9M 2023 (9M 2022: ₦195.6 billion) was driven by an increase in raw materials cost and energy cost. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in higher cost of production.

Gross profit increased by 95.1% to ₦183.8 billion in 9M 2023 (9M 2022: ₦94.2 billion) even as

gross profit margin appreciated by 250bps to 35.0% in 9M 2023 (9M 2022: 32.5%) due to the slight selling price adjustment and new market penetration for sales within the year.

Selling and distribution expenses increase by 95.8% to ₦20.3 billion in 9M 2023 (9M 2022: ₦10.4 billion) due to increase in cost of diesel impacting within the period and renewed focus on aggressive sales strategy to push volume.

Administrative expenses also increased by 76.3% to ₦7.9 billion in 9M 2023 (9M 2022: ₦4.5 billion) driven majorly by the increase in general expenses (41.1%) to ₦1.2 billion in 9M 2023 (9M 2022: ₦885 million). Others key highlights includes Bank Charges valued at ₦1.28 billion.

Operating profit grew by 94.5% to ₦156.9 billion in 9M 2023 (9M 2022: ₦80.7 billion) benefitting from top line growth driven by price adjustment, local market expansion and our export sales and gradual commissioning of our ongoing expansion plans. Operating profit margin appreciated by 210bps to 29.9% in 9M 2023 (9M 2022: 27.8%).

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BUA Foods Plc - Q3 2023 Unaudited Results

NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG

Profit before tax increased significantly by 50% to ₦111.4 billion in 9M 2023 (9M 2022: ₦74.2

billion) while sustaining her double digit in profit before tax margin at 21.2% (9M 2022: 25.6%).

Profit after tax grew by 53.6% to ₦105.6 billion in 9M 2023 (9M 2022: ₦68.8 billion). while the Earning per Share (EPS) grew by 53.6% to N5.87 in 9M 2023 from N3.82 in the corresponding period.

Total assets increased by 24.8% to ₦757.8 billion as of 9M 2023 (FY 2022: ₦607.2 billion) driven largely by growth in trade and other receivables of ₦215.6 billion from ₦119.3 billion representing 72.3% at FY 2022.

Total liabilities increase by 33.5% to ₦502.3 billion as of 9M 2023 (FY 2022: ₦376.2 billion). This was driven mainly by a surge in other current liabilities of 133.3% to ₦109.9 billion from ₦47.1 billion in FY 2022.

Total equity increased by 10.7% to ₦255.6 billion as of 9M 2023 (FY 2022: ₦230.9 billion) mainly due to a double-digit growth of 11% in retained earnings to ₦247.5 billion as of 9M 2023 (FY 2022: ₦222.9 billion).

Operating divisional performance

Sugar division

The Sugar division contributed 60% to revenue in 9M 2023 (9M 2022: 64%). Sugar Revenue grew

by 74% to ₦315.1 billion in 9M 2023 (9M 2022: ₦180.9 billion). This was driven by sales volume growth, price adjustments and export sales within the period. Volume sold increases significantly by 24% to 517,274 tons within the period (9M 2022: 418,328 tons). Fortified Sugar sales sustained her market share with 193.3% increase sale to ₦245.5 billion from ₦83.7 billion in same period of 2022.

Flour division

The Flour division contributed 29% to revenue in 9M 2023 (9M 2022: 22%). Revenue increased

significantly by 126% to ₦31.3 billion in 9M 2023 (9M 2022: ₦19.8 billion). This was driven by increase in sales volume and gradual commissioning of our expansion plans as well as redesigned route to market distribution along the integrated supply value chain network. While volume sold increased by 73% to 238,785 tons within the period (9M 2022: 138,284 tons). Revenue from bakery flour grew by 118.4% to ₦135.5 billion in 9M 2023 (9M 2022: ₦62.1 billion) while wheat bran appreciated by 250.2% to ₦14.4 billion in 9M 2023 (9M 2022: ₦4.1 billion). This is a testament to the acceptance of the BUA bran brand by animal feeds manufacturers.

Pasta division

The Pasta division contributed 11% to revenue in 9M 2023 (9M 2022: 17.6%). Revenue increased by 37% to ₦58.3 billion in 9M 2023 (9M 2022 ₦42.7 billion). This was driven by price adjustments and other innovative proactive sales initiatives within the year. There was 4% increase in the production volume to 91,305 tons (9M 2022: 87,748 tons) within the period.

Rice division

The Rice division as new entrance to the business contributed 0.3% valued at ₦0.99 billion to revenue in 9M 2023. The potential looks good in the coming quarters.

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BUA Foods Plc - Q3 2023 Unaudited Results

NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG

For further information, please contact:

Abdulrasheed Olayiwola

Chief Financial Officer

1. [e-mail]

M: 234 803 334 3914

Gabriel Fapojuwo

Investor Relations Manager

1. [e-mail]

M: [phone]

Definition of terms

Gross profit refers to revenue minus cost of sales.

Gross profit margin corresponds to gross profit as a % of revenue.

Operating expenses corresponds to Selling and distribution expenses, Administrative expenses and Other operating expenses.

EBITDA refers to earnings before interest, tax, depreciation and amortization.

EBITDA margin corresponds to EBITDA as a % of revenue.

Operating profit refers to gross profit minus operating expenses plus other operating income.

Operating profit Margin corresponds to EBIT as a % of revenue.

Profit before Tax corresponds to EBIT minus net finance (cost)/income and plus share of profit of associates and joint venture using the equity method.

Profit before tax margin corresponds to profit before tax as a % of revenue.

Return on equity corresponds to net profit reported to average total equity.

Return on assets corresponds to net profit reported to average total assets.

Earnings per share is profit after tax from continuing operations reported to weighted average number of shares.

About BUA Foods Plc

BUA Foods Plc (NGX: BUAFOODS) is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The Company owns strategically located plants across Nigeria, in addition to a cordial alliance with local stakeholders in host

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BUA Foods Plc - Q3 2023 Unaudited Results

NGX Ticker: BUAFOODS; Bloomberg Ticker: BUAFOODS NL; Reuters: BUAFOODS.LG

communities. Additionally, BUA Foods is a resilient business built on a strong brand proposition and is an operator that has a well-known reputation for delivering high-quality products.

BUA Foods continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain. The Company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.

Headquartered and listed in Nigeria, BUA Foods is one of the most capitalized companies on the NGX Exchange and a leading consumer goods firm by market value.

For more information visithttps://www.buafoodsplc.com/overview/

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