DANGSUGAR – DANGSUGAR’s topline grew by +40.15% YoY to NGN94.45bn in Q1:2022 from NGN67.39bn in Q1:2021. Cost of sales increased by 51.95%YoY to NGN74.99bn in Q1:2022, thereby driving cost to sales higher to 79.39% in Q1:2022 (vs 73.23% in Q1:2021). The high cost of sales is largely attributable to high cost of raw materials. However, gross profit expanded by 7.86% to NGN19.46bn (albeit translating to a lower gross margin of20.61% from 26.77% in Q1:2021).
BUAFOOD – BUAFOOD’s revenue increased by 28.30% YoY to NGN90.07bn in Q1:2022. This performance was largely driven by higher revenue from the sugar division (+15.94%YoY) – which accounts for 60.11% of the total revenue for the period. Cost of sales soared by 35.50%YoY to NGN61.74bn. This impacted gross margin as it declined to 31.45% in Q1:2022 from 35.10% in Q1:2021.