BUA Foods Q1:2025 Earnings Note | Sustained Growth Momentum
In Q1:2025, BUA Foods delivered another strong performance, with profit after tax more than doubling year-on-year. This impressive bottom-line growth was supported by modest revenue growth of 23.85% YoY, improved cost efficiency, and a strategic focus on expanding production and market reach.Beyond the numbers, BUA Foods is clearly positioning itself for long-term dominance. With ongoing investments in production capacity, new product introductions such as the 25kg Midi-Bulk Macaroni Pack, and a deliberate price reduction strategy, the company is building momentum in key consumer segments.
Currently trading at NGN418.00 (as of May 13, 2025), BUA Foods is below our 12-month target price of NGN500.74, implying an upside potential of 19.79%. While the stock's P/E ratio of 60.06x may seem steep compared to peers like DANGSUGAR and NNFM, it still sits below the industry average of 70.72x, suggesting room for rerating as earnings continue to outperform.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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