Billionaire Abdul Samad Rabiu’s food empire shines bright with $120 million profit in H1 2023

Yusuf Abdulfatai -

BUA Foods Plc, the consolidated food conglomerate led by Nigerian billionaire Abdul Samad Rabiu, has demonstrated robust financial performance in the first half of 2023, reaffirming its dominant position in the country’s food and fast-moving consumer goods (FMCG) sector.

According to the recently published financial results, the company’s profit for the first half of 2023 surged by 142 percent, surpassing the $120-million mark.

The remarkable growth in BUA Foods’ earnings can be attributed to a substantial 90.6-percent surge in revenue, which reached N320.9 billion ($433.5 million) during H1 2023, compared to N168.8 billion ($222.46 million) in the same period the previous year. Key drivers of this top-line expansion were price adjustments, successful local market expansion, and thriving export sales.

The surge in revenue was bolstered by impressive performance across various product segments. Notably, the revenue generated from sugar sales experienced an 80-percent increase, soaring from N109.1 billion ($143.8 million) to N196.5 billion ($259 million). Flour sales also registered a staggering 154 percent growth, rising to N86 billion ($113.3 million) from N33.9 billion ($44.67 million) in H1 2022.

Additionally, pasta product sales witnessed a commendable 47-percent rise, reaching N37.9 billion ($49.95 million) from N25.8 billion ($34 million) in the corresponding period last year. The rice division, which underwent an overhaul, contributed N466 million ($614,200) to the top line during the same period.

BUA Foods, which is majority owned by Rabiu, is the unified food business segment of BUA Group. The food unit has solidified its position as one of Nigeria’s most profitable companies. The group’s operations include BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited.

Despite the outstanding financial performance, the group’s share price on the Nigerian Exchange remained flat at N135.75 ($0.1789) per share, resulting in a market capitalization of N2.44 trillion ($3.2 billion).

At the present price, Rabiu’s stake in the company is valued at N2.26 trillion ($2.97 million), cementing his position as one of Africa’s richest billionaires.