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Abdul Samad Rabiu, Nigeria’s third-richest person, is set to receive a N98.83 billion ($79.4 million) dividend from his stake in BUA Foods Plc. The food conglomerate, formed through a consolidation in late 2021, reported an operating profit of N206.32 billion ($166.41 million) at the end of its fiscal year in 2023.
BUA Foods is the unified food business segment of Nigeria’s BUA Group. It comprises the operations of BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice. Abdul Samad Rabiu and his son, Isyaku Naziru Rabiu, hold a 99.8 percent stake in the newly established food unit.
Abdul Samad Rabiu, son to get $79.4 million
The 79.4 million-dollar dividend which will be paid electronically into the bank accounts of Rabiu and his son from the group’s 2023 earnings of $210.48 million, is part of a proposed cash distribution by the board of directors.
According to BUA Foods’ financial statements, the group’s profit surged 75.6 percent year-on-year, rising from N117.49 billion ($94.77 million) in 2022 to N206.32 billion ($166.41 million) in 2023.
This marks the third consecutive annual profit increase since the company’s shares debuted on the Nigerian Exchange over two years ago. The surge is attributed to a significant rise in sales of its core products, including sugar, pasta, and bakery flour.
Revenue jumps 74 percent on strong sales
The group’s revenue in 2023 increased by 74.36 percent from N418.35 billion ($336.08 million) to N729.44 billion ($585.72 million) as a result of strong sales of non-fortified sugar, pasta, and bakery flour during the year, resulting in a surge in earnings at the end of the year.
Due to this impressive financial performance, the board of directors proposed a final dividend of N5.50 (0.00442) per share. Shareholders, including Abdul Samad Rabiu and his son, can expect this payout to hit their bank accounts on Sept. 26, 2024, pending approval at the upcoming annual general meeting.
