Nigerian billionaire Abdul Samad Rabiu’s BUA Foods to distribute $79.5-million dividend

BUA Foods Plc, owned by Nigerian billionaire Abdul Samad Rabiu, has announced plans to distribute a final dividend of N99 billion ($79.53 million) to its shareholders. This move underscores the company’s strong financial performance in 2023.

The substantial dividend underscores the company’s dedication to rewarding its shareholders following an outstanding performance in 2023. This performance solidifies its status as one of the most profitable and top-performing players in the FMCG industry.

BUA Foods reports 75.6 percent surge in operating profit

BUA Foods delivered a robust 75.6-percent increase in operating profit during its fiscal year 2023, rising from N117.49 billion ($94.77 million) to N206.32 billion ($166.41 million). This highlights the company’s proficiency in expanding its product offerings and optimizing profitability within a competitive market landscape.

The group’s revenue during the year surged by 74.36 percent, climbing from N418.35 billion ($336.08 million) to N729.44 billion ($585.72 million) in 2023. This growth was primarily driven by increased sales of non-fortified sugar and other food products. The resulting surge in consumer demand translated to higher prices and revenue for the group.

The company’s strong performance also led to a 13.46-percent increase in shareholder equity. Its retained earnings surged by 13.95 percent, climbing from N230.96 billion ($185.51 million) to N262.06 billion ($210.48 million), enabling the declaration of a N99-billion ($79.53 million) dividend for the financial year ending December 2023, with payout scheduled on or before Sept. 26, 2024.

BUA Foods’ expansive agribusiness portfolio

BUA Foods, a subsidiary of BUA Group, encompasses sugar refining, flour milling, pasta production, and rice processing through units like BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited. Listed in 2022, the company boasts a significant asset base, including the sprawling 20,000-hectare Lafiagi integrated sugar estate.

The complex houses a refinery, sugarcane crushing facilities, an industrial ethanol plant, schools, a housing estate under development, and a three-kilometer airstrip, all integrated within a cultural heritage area. Total assets surged 76.28 percent year-on-year, rising from N607.22 billion ($489.67 million) in 2022 to N1,070.44 billion ($863.30 million) in 2023.