Nigerian billionaire Abdul Samad Rabiu’s BUA Foods posts $167.8 million in profit in 2021

BUA Foods Plc, a newly consolidated food conglomerate led by Nigerian billionaire businessman Abdul Samad Rabiu, reported a profit of N69.76 billion ($167.84 million) at the end of its 2021 fiscal year thanks to a double-digit percentage increase in revenue.

BUA Foods’ profit increased by 97.05 percent from N35.41 billion ($85.2 million) in 2020 to N69.76 billion ($167.84 million) in 2021, according to the group’s financial statement, which represents its first annual report since its shares were listed on the Nigerian Exchange over three months ago.

The increase in the group’s profit can be attributed to a significant increase in the sales of its products, which include sugar, pasta and bakery flour.

The group’s revenue in 2021 increased from N192.86 billion ($464.02 million) to N333.27 billion ($801.85 million) as a result of strong sales of sugar, pasta and bakery flour during the year, resulting in a surge in earnings at the end of the year.

BUA Foods earned N79.16 billion ($190.4 million) from non-fortified sugar sales and N129.84 billion ($312.4 million) from fortified sugar sales in the country. While sales of pasta and bakery flour contributed N54.4 billion ($130.9 million) and N64.2 billion ($154.46 million) to its consolidated revenue in 2021, respectively.

As a result of the year’s strong financial performance, the board of directors recommended a first-ever dividend of N3.5 per share, paid from profits declared in the fiscal year ended Dec. 31, 2021.

If approved, dividends paid to shareholders will be subject to the deduction of withholding tax at the appropriate rate at the time of payment.

BUA Foods, the unified food business segment of the Nigeria-based BUA Group, includes the activities of BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.

Rabiu and his son own 99.8 percent of the newly established food business segment, which has added $2.3 billion to his wealth since the group’s shares were successfully listed on Jan. 5.