Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — FY2023 Earnings Presentation
24 slides from Bua Foods's earnings presentation, 2024
Slide 1: To make a difference
To make a difference
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ▪ This presentation has been prepared by BUA Foods PLC (“BUA Foods” or the “Company”) to provide an overview of the Company. “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material dis
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) ▪ The presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. BUA Foods may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from
Slide 4: Presenters
Presenters Engr. Ayodele Abioye (PhD, MNSE) Managing Director Mr. Abdulrasheed Olayiwola Executive Director & CFO
Slide 5: Outline
Outline Company Overview 06 Business Operation Highlights 09 Financial Performance Highlights 15 Outlook & Strategic Bets 19 Q&A 21
Slide 6: SECTION 1: Company Overview
SECTION 1: Company Overview 6
Slide 7: Overview
Overview Our Brand is Evolving, Creating Value, Promoting Food Security & Nourishing lives Approach 8 5 2 Plants across the +3K Business Divisions Strategic Subsidiaries country Direct & Indirect Jobs Most profitable 3rd +2k Food Business Most valuable stock ₦ 6.8 Shareholders diversified on the on
Slide 8: Our Journey So Far
Our Journey So Far 1998 2001 2014 2021 - 2023 More Edible Oil Acquisitions Foray into Rice Milling Birth of BUA Foods plc Company Birth • Restructuring & merger • Incorporation of BUA Rice Ltd • Establishment of BUA • Acquisition of Nigeria Oil all four business divisions International Ltd as a Mill
Slide 9: SECTION 2: Business Operation Highlights
SECTION 2: Business Operation Highlights 9
Slide 10: Economic Events that Impacted Our Business During the Period
Economic Events that Impacted Our Business During the Period Russia – Ukraine war escalated food prices Global crop and food prices have been increasing since mid- Naira re-design policy worsened the hardship 2020. Russia’s aggression against Ukraine has further driven up prices. Q1 saw disruptions
Slide 11: Increase in Volume Sustained by Continued Investment in Production Systems
Increase in Volume Sustained by Continued Investment in Production Systems Volume (CAGR) Volume in tons (‘000) Volume 2023 1,092 952 889 5% 1,092,219 tons 2021 FY – 2023 FY Series1 23% 2021 2021 2022 2022 2023 2023 Volume Growth (y.o.y) 5% 90% 16% 1%
Slide 12: Efficiency Evidenced by Increased Revenue Per Ton
Efficiency Evidenced by Increased Revenue Per Ton Revenue/Ton (CAGR) Revenue Per Ton (‘000) Revenue/Ton 2023 666 470 24% NGN 666 349 Revenue 2021 FY – 2023 FY 42% 2020YE 2021YE 2022YE 2021 2022 2023 Cost/Ton (CAGR) Cost Per Ton (‘000) Cost/Ton 2023 473 357 21% NGN 473 267 Revenue 2021 FY – 2023 FY 3
Slide 13: Capital Market performance
Capital Market performance We have remained committed to sustaining value to our shareholders *MARKET CAPITALIZATION 2021 – N720 BN * 8x 2024 – N6.8 TrlN **SHARE 2021 – N40 2021 – 18.6 MN Units ANNUAL PRICE TRADING PER UNIT 2024 – N379 8x 4.5x 2024 – 84.1 MN Units TOTAL ASSETS VOLUME Respect 2021 –
Slide 14: Driving Through Sustainability
Driving Through Sustainability
Slide 15: SECTION 3: FY 2023 Financial Performance Highlights
SECTION 3: FY 2023 Financial Performance Highlights 15
Slide 16: Top & Bottom-line Growth Enabled by Volume and Price Increase
Top & Bottom-line Growth Enabled by Volume and Price Increase REVENUE PROFITABILITY Net revenue up 74% to N729 01 04 Profit After Tax (PAT) up 23% billion from N418 billion to N112 billion from N91 billion recorded in the PY in the PY GROSS PROFIT (PBT) EARNINGS PER SHARE 02 05 Gross profit up 96% t
Slide 17: Increase in Top Line Driven by Volume, Pricing & Product Mix
Increase in Top Line Driven by Volume, Pricing & Product Mix (Billion) Revenue 2023 NGN 729 Billion 74% Revenue Drivers 58% 30% 12% 1% Contribution Contribution Contribution Contribution ₦421.5 billion ₦217 billion ₦87.9 billion ₦2.1 billion
Slide 18: Cost Drivers & Management Levers
Cost Drivers & Management Levers Cost of Sales (+64%) • Increased cost of goods sold proportional to increase in volume and revenue. • COGS recorded was N468 Billion and was up Raw Materials & FX 64% relative to comparative year Sourcing Dynamics • Our raw material sourcing mechanism is hinged on en
Slide 19: Increase in profitability Aided by Increased Volume & Price
Increase in profitability Aided by Increased Volume & Price Gross Profit (Billion) Gross Profit (CAGR) Gross Profit 2023 260 132 36% 102 NGN 260 Billion 2021 FY – 2023 FY 96% 2021 2020YE 2022 2021YE 2023 2022YE PAT (CAGR) Profit After Tax (Billion) PAT 2023 112 91 17% 69 NGN 112 Billion 2021 FY – 20
Slide 20: Linear Yield, Excellent Returns to Investors
Linear Yield, Excellent Returns to Investors EPS (CAGR) EARNINGS PER SHARE (EPS) EPS 2023 6.23k 5.07k 14% 4.24k NGN 6.23k FY 2021 - FY 2023 23% 2021 2022 2023 DPS (CAGR) DIVIDEND PER SHARE (DPS) DPS 2023 (Proposed) 5.50k 4.50k 16% 3.50k NGN 5.50k 2021 FY – 2023 FY (Proposed) 22% 2021 2022 2023
Slide 21: Stability Evidenced by Strong Asset Base, Increasing Retained Earnings
Stability Evidenced by Strong Asset Base, Increasing Retained Earnings Total Assets (CAGR) Total Assets (Billion) Assets 2023 1,070 607 22% NGN 1.07 Trillion 593 Revenue 2021 FY – 2023 FY 76% 2021 2022 2023 2020YE 2021YE 2022YE Retained Earnings (CAGR) Retained Earnings (Billion) Retained Earnings 2
Slide 22: SECTION 4: Outlook & Strategic Big Bets
SECTION 4: Outlook & Strategic Big Bets 19
Slide 23: Expanding Frontiers to make a difference
Expanding Frontiers to make a difference We are focused on driving our strategic bets towards achieving and sustaining growth. In 2024, we target to deliver: • Double digits growth in Revenue • PAT growth at double digits • EPS growth by minimum of 10% Production Systems Market Product Supply Chain
Slide 24: Q&A Thank You
Q&A Thank You Thank You BUA Foods PLC BUA Towers, PC 32, Churchgate Street Victoria Island, Lagos Tel: +234 1 461 0669 +234 1 262 3535 Email: ir@buafoodsplc.com