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Led by Nigerian billionaire businessman Abdul Samad Rabiu, the newly consolidated food business BUA Foods Plc has reported more than $39.9 million in profit in the first nine months of 2021.
The news comes despite a slump in fortified sugar sales and a single-digit increase in its direct production costs.
Its recently published unaudited financial statement for the first nine months of 2021 represents its first financial filing since its shares were listed on the Nigerian Exchange nearly two weeks ago.
Compared to last year’s figures, BUA Foods’ net profit rose by 6.8 percent from N15.53 billion ($37.5 million) in the first nine months of 2020 to N16.56 billion ($40 billion) at the end of the first nine-month period of 2021.
Its resilient financial performance in 2021, which led to the single-digit surge in profit, was driven by a 152-percent rise in sales by industrial sugar, pharmaceutical and food and beverage manufacturing companies.
Its performance during the nine-month period was also supported by the increased sale of sweeteners coupled with a decline in operating expenses from N2.4 billion ($5.8 million) in 2020 to N1.37 billion ($3.3 million) in 2021.
As a result, BUA Foods’ operating profit rose from N18.96 billion ($45.8 million) to N21.25 billion ($51.3 million), while its net profit increased by 6.8 percent.
During the nine-month period, the company’s total assets grew by 5.36 percent from N348.65 billion ($841.5 million) to N367.35 billion ($886.7 million), while the retained earnings linked to its shareholders increased from N112.7 billion ($272 million) to N129.3 billion ($312.1 million).
As of the opening of the Nigerian Exchange this morning, Jan. 18, shares in BUA Foods were trading at a price of N61.8 ($0.149) per share, 6.3-percent lower than their opening price on the local bourse yesterday.
Since listing on the Nigerian Exchange 12 days ago, BUA Foods’ stock price and market capitalization have soared by more than 54 percent thanks to sustained investor buying interest in the company.
The upward price movement saw the consolidated food company become the most capitalized consumer goods company on the Nigerian Exchange ahead of Nestle Nigeria Plc.
The price bump also pushed the net worth of Rabiu above the $7.9-billion mark, making him the second-wealthiest man in Nigeria ahead of telecom mogul Mike Adenuga.
