Nigerian billionaire Abdul Samad Rabiu’s food business records $261-million revenue in Q1 2024

Omokolade Ajayi -

BUA Foods Plc, a leading food conglomerate majority owned by Nigeria’s third-richest man Abdul Samad Rabiu, saw revenue surge 147.3 percent to N356.92 billion ($261 million) in the first quarter of 2024, from N144.32 billion ($105.4 million) a year earlier. The strong performance expands its lead as Nigeria’s top food conglomerate.

Revenue growth was fueled by a significant increase in sugar sales. Fortified sugar sales jumped to N197.96 billion ($144.7 million) from N61.61 billion ($45 million), while non-fortified sugar sales rose to N39.92 billion ($29.2 million) from N31.41 billion ($23 million)

BUA Foods’ flour, pasta sales soar

Sales across other segments also climbed, with bakery flour up to N80.64 billion ($59.1 million) from N29.64 billion ($21.7 million) and pasta sales increasing to N37.04 billion ($27.12 million) from N19.4 billion ($14.2 million).

The triple-digit revenue growth translated to a 117.5-percent increase in operating profit, which rose to N104.72 billion ($76.4 million) from N48.15 billion ($35.1 million) in the prior-year quarter. Profit after tax climbed 37.9 percent to N55.82 billion ($40.7 million) from N40.47 billion ($29.5 million).

BUA Foods: Diversified player in Nigeria’s food

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. Rabiu and his son, Isyaku Naziru Rabiu, hold a 99.8 stake in the food unit.

Profit soars, assets inch up

Building on a strong 2023 with profit surging 75.6 percent year-on-year, BUA Foods’ total assets saw a marginal increase from N1.07 trillion ($781.6 million) as of Dec. 31, 2023, to N1.08 trillion ($790 million) as of March 31, 2024.

However, total equity rose to N317.89 billion ($232.6 million) from N262.06 billion ($191.4 million), and retained earnings climbed to N309.82 billion ($226.8 million) from N254 billion ($185.87 million), solidifying its position as a leader in Nigerian profitability.