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BUA Foods Plc, a consolidated consumer goods conglomerate led by Nigerian billionaire Abdul Samad Rabiu, has received the first of two shipping vessels to supplement its sugar export operations to West Africa.
Rabiu, the chairman of BUA Foods, said the increased and continuing demand for refined sugar in the region made it critical for the food business to strengthen its capability with the shipping vessel, and its arrival will aid in timely delivery and bring about inclusive growth in the region.
“As we drive our business for growth with a focus on sustainable returns, and benefit to all our stakeholders and the Nigerian economy, owning a shipping vessel is an important step in BUA Foods strategy,” he said.
The MV Bundu, built by Mitsubishi of Japan, is named after the area where the refinery is located. The cargo capacity of the vessel is suited to enhancing the timely and sustainable delivery of more refined sugar in the face of rising export demand from the African region.
The new vessel will depart and berth at BUA’s port and terminal, increasing export capacity while lowering operating costs for the group.
The delivery of the Mitsubishi-built vessel will be critical to the group’s strategic expansion plan, as the new vessel will improve the group’s ability to deliver more refined sugar quickly and sustainably in the face of growing export demand from across the African region.
The increased export capacity will reduce operating costs while diversifying BUA Group’s revenue and earnings capacity. According to the management, BUA Food’s export of refined sugar to other African countries will benefit the economy by providing alternative foreign exchange earnings.
In an effort to strengthen its export drive, a second shipping vessel is expected to arrive by the end of the second quarter of 2022 to promote cross-border trade to businesses across the West African region and other African countries.
BUA Foods, the Nigeria-based BUA Group’s unified food business segment, includes the activities of BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.
Rabiu, Nigeria’s second-wealthiest billionaire, and his son own 99.8 percent of the newly established food business segment, which has added $2.3 billion to his fortune since the group’s shares were successfully listed on Jan. 5.
The leading food company earned N22.84 billion ($55 million) in the first quarter of 2022 thanks to a 28.3-percent increase in revenue during the period under review. This comes after it reported a profit of N69.76 billion ($167.84 million) at the end of its 2021 fiscal year as a result of a double-digit percentage increase in revenue.
