BUA Foods has reported a foreign exchange (FX) loss of N188.7 billion for the financial year ending December 31, 2024, due to the continued volatility in Nigeria’s foreign exchange market.
The company disclosed this in its statement of profit or loss and other comprehensive income, which was filed on the Nigerian Exchange Limited (NGX) on Thursday. The report highlighted that the unstable foreign exchange environment has significantly affected businesses operating in Nigeria.
Despite the huge foreign exchange loss, BUA Foods remained profitable, posting a profit before tax of N289.1 billion and a net profit after tax of N274.9 billion. The company’s earnings per share (EPS) also saw a significant increase, rising from 6.23 in the previous year to 15.27.
The company’s operating profit for the year stood at N489.2 billion, more than double the N206.3 billion recorded in 2023.
BUA Foods’ total revenue had already surged by 104% to N1.07 trillion for the first nine months of 2024, as previously reported by The PUNCH.
BUA Foods’ total assets grew to N1.06 trillion, reflecting its expansion and investment efforts. The company’s equity stood at N438 billion, showing a strong capital base.
However, the company also reported total liabilities of N618.9 billion, indicating a more leveraged position.
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The rising foreign exchange losses affecting BUA Foods reflect the wider economic challenges in Nigeria, where businesses are struggling with a fluctuating naira-dollar exchange rate. Many companies in Nigeria have suffered heavy losses due to the depreciation of the naira, which increases the cost of importing raw materials and servicing foreign debts.
Experts believe that government policies and forex management strategies will be critical in stabilizing the business environment. The continued devaluation of the naira has made it difficult for businesses to plan long-term investments and has increased operational risks.
Despite the FX loss and economic uncertainties, BUA Foods remains optimistic about future growth. The company has continued to expand its operations and increase its revenue, maintaining a strong position in Nigeria’s food and beverage industry.
Industry analysts believe that BUA Foods’ ability to sustain profitability amid economic challenges demonstrates its resilience and strong operational strategies.