Home » Nigeria’s second-richest man’s food business hits $610-million revenue in 2023

Nigeria’s second-richest man’s food business hits $610-million revenue in 2023

BUA Foods achieves record-breaking 74-percent revenue surge in 2023

by Omokolade Ajayi
Abdul Samad Rabiu

BUA Foods Plc, a leading food conglomerate within the BUA Group and largely owned by Nigeria’s second-richest man Abdul Samad Rabiu, has reported an outstanding financial performance for the 2023 fiscal year.

According to the group’s recently published unaudited financial statements, BUA Foods achieved a remarkable milestone by surpassing the $610-million revenue mark during the period under review.

BUA Foods represents the unified food business segment of the Nigerian-based BUA Group, encompassing subsidiaries such as BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited.

Rabiu, the chairman of BUA Group, and his son, Isyaku Naziru Rabiu, jointly own a 99.8-percent stake in BUA Foods, presently valued at over $5.04 billion. This stake contributes to Abdul Samad Rabiu’s substantial net worth of $8.48 billion.

BUA Foods achieves record-breaking 74-percent revenue surge in 2023

The recently disclosed unaudited financial statements for the year ended Dec. 31, 2023, reveal a substantial 74-percent surge in BUA Foods’ revenue. The revenue escalated from N418.35 billion ($350.3 million) in 2022 to N728.48 billion ($610 million) in 2023.

This remarkable growth is attributed to a year-on-year increase of 53 percent in revenue generated from sugar sales, rising from N275.2 billion ($230.4 million) in 2022 to N421.5 billion ($352.9 million).

Additionally, the sales of flour products experienced an extraordinary 152-percent surge, reaching N216.9 billion ($181.6 million) from N85.9 billion ($72 million). Sales from pasta products also witnessed a robust increase of 54 percent, climbing to N87.9 billion ($73.6 million) from N57.2 billion ($479 million).

Despite challenges in the paddy supply chain for rice production, impacting full commercialization plans, BUA Foods’ rice division debuted in 2023, contributing marginally to the overall revenue with a total of N2.1 billion ($1.75 million) generated from its operations.

Despite surging expenses, BUA Foods achieves 22-percent profit growth, reaching $96.3 million in 2023

The double-digit surge in revenue, attributed to price adjustments and volume increases from capacity expansion for IRS, resulted in an 82-percent growth in operating profit. The figures rose from N117.4 billion ($98.34 million) in 2022 to N213.2 billion ($178.6 million) in 2023.

Despite a 98-percent surge in selling and distribution expenses and a 116-percent surge in finance charges, the group’s profit grew by 22 percent. The profit rose from N91.3 billion ($76.2 million) in 2022 to N115 billion ($96.3 million) at the end of the group’s 2023 fiscal year.

BUA Foods demonstrated robust financial performance, with retained earnings and total assets reaching N253.44 billion ($212.2 million) and N734.07 billion ($614.7 million), respectively. This highlights the company’s resilience and strategic growth, solidifying its position as a key player in the Nigerian and African food industry.

You may also like


The world’s premier source of news on Africa’s billionaires and UHNWIs.


Get the daily email to stay informed about African billionaires and UHNWIs. Get informed and entertained, for free.

Latest News

@2024 – Billionaires.Africa. All Rights Reserved.