As a reward for driving value towards sustainable growth and market leadership, BUA Foods Plc has achieved a record market capitalisation of over N5 trillion post-consolidation and listing on the Nigerian Exchange (NGX).
Driven by the desire to fortify its presence in the agribusiness and food-processing sector, Chairman, BUA Foods, Abdul Samad Rabiu, said the company has consolidated its diverse food businesses into a unified entity and listed by introduction on the NGX two years ago.
“This not only streamlined operations but also bolstered the company’s capacity to capitalise on the growth opportunities and export potential presented by the African Continental Free Trade Area (AfCFTA). By consolidating the business divisions alongside two wholly owned subsidiaries, the company plays a pivotal role in driving economic growth, producing high-quality foods and creating long-term value,” he said.
Adding that food security is their most important mission, he stressed that they are working fully towards fulfilling Africa’s food demands and improving the well-being of individuals and communities, distinguishing and positioning the company as an important player in Nigeria’s dynamic food sector and beyond.
For the financial year ending 2023, BUA Foods total revenue reached N728 billion, marking a 74 per cent year-on-year increase, and underscores the company’s resilience and agility in navigating global and local economic challenges, with a notable compound annual growth rate of 30 per cent since 2021.
Operating profit expanded from N79 billion to N213 billion between 2021 and 2023, respectively while profit before tax surged to N252 billion, compared to N102 billion in the previous year.
Also, profit after tax soared from N69 billion to N111 billion, reflecting robust operational performance and effective cost management strategies.
Notably, the total asset witnessed substantial growth, rising from ₦59 billion in 2021 to ₦734 billion in 2023, indicating the company’s strengthened financial position and operational scale.
Over the past two years, Rabiu said they have remained steadfast in their commitment to delivering value to stakeholders across the capital market ecosystem, reinforcing their dominance and market leadership.
“By facilitating increased liquidity at the NGX and providing returns to investors through capital gains and prompt dividend pay-outs, we bolstered confidence among shareholders and investors alike.
Furthermore, our proactive approach has enhanced portfolio value and profitability for institutional and retail investors. The notable growth in share price, soaring from N40 to N320, translated to remarkable gains for investors and reaffirms our dedication to the food industry.”
Moreover, the remarkable surge in market capitalisation, from N720 billion in 2021 to over N5.7 trillion in 2024, solidifies the company’s position as the fifth largest listed entity on the NGX by market capitalisation, further underscoring its resilience and enduring market prominence.
Furthermore, the flour division of the business witnessed a substantial expansion in production capacity, increasing from 500,000 Metric Tonnes (MT) to 1,220,000 MT (152 per cent). At the same time, the pasta division saw its capacity rise from 250,000 MT to 500,000 MT between 2021 and 2023 (54 per cent). Additionally, it embarked on developing its rice business, with an initial production capacity of 200,000 MT leveraging its commitment to utilising locally sourced raw materials. This strategic approach, Rabiu said, not only supports national development plans but also fosters the advancement of Nigeria’s local rice industry, ultimately enhancing the economic prospects of local communities.
Despite maintaining a consistent production capacity of 1,500,000 MT since 2021, the sugar division achieved a 53 per cent growth, underscoring its significance within the region’s sugar industry landscape.
In the last two years, he added that they expanded their workforce by 57 per cent as a result of ongoing expansion projects in the different divisions thereby contributing to the country’s economic growth.
“As BUA Foods embarks on its journey towards continued success, it remains firmly poised to navigate future growth and expansion with confidence and foresight. With a solid foundation and a clear vision guiding our path forward, we plan to leverage emerging opportunities to deliver sustained value for the foreseeable future” he added.
Managing Director, Ayodele Musibau Abioye said, “In 2024 we believe our business structure and strategy position us to continue winning in the marketplace. We will focus on driving top-line growth in alignment with our established growth model, leveraging ongoing capacity expansion with product and pack innovation for sustainable growth in the short and long-term.”
