Nigerian billionaire Abdul Samad Rabiu eyes $151.6 million in BUA Foods dividends

Abdul Samad Rabiu, one of Nigeria’s richest billionaires and leading industrialists, will receive N62.88 billion ($151.66 million) in dividends from his stake in BUA Foods Plc after the newly consolidated food conglomerate reported a profit of N69.76 billion ($167.84 million) at the end of its fiscal year in 2021.

BUA Foods operates as the unified food business segment of the Nigeria-based BUA Group. Its operations include 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.

The $151.6-million dividend that the Nigerian billionaire and his son are on course to receive will be paid from the group’s retained earnings of N192.66 billion ($464.7 million) at the end of 2021 as part of the cash distribution approved by the board of directors.

According to the company’s announcement, his dividend, which will be paid along with the dividends of other shareholders, will be deposited into his account electronically on or after the company’s annual general meeting.

At the end of 2021, BUA Foods’ profit rose 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.

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.

Rabiu will receive N62.88 billion ($151.66 million) in dividends from his stake in the group, according to the board’s decision.