Table of Contents
Key Points
- BUA Foods partners with Turkish firm IMAS to expand milling capacity to 2.5 million tonnes annually, enhancing production and market position.
- New partnership involves building four advanced flour mills, boosting daily milling capacity by 3,200 tonnes per day, improving local food security.
- BUA Foods sees a 110% revenue increase in 2024, driven by strong sales in key sectors, with significant growth in profit and assets.
BUA Foods Plc, a Lagos-based food conglomerate majority-owned by Nigeria’s third-richest man Abdul Samad Rabiu, has entered into a strategic partnership with Turkish flour milling equipment manufacturer IMAS to significantly expand its wheat flour milling capacity.
The collaboration will increase BUA Foods’ milling capacity to 2.5 million tonnes per annum (mtpa), bolstering its production capabilities and reinforcing its market position.
The agreement was sealed during a ceremony attended by senior executives from both companies. This expansion aligns with the company’s broader strategy to enhance production across its various business divisions, following a significant investment in one of its integrated sugar estates earlier this year.
Expansion to bolster Nigeria’s food security
Under the terms of the partnership, BUA Foods will construct four state-of-the-art wheat and flour milling factories, adding a total of 3,200 tonnes per day to its milling capacity. The expansion is expected to strengthen Nigeria’s food security by increasing local production, reducing dependency on foreign exchange-impacted raw materials, and creating additional employment opportunities nationwide.
“This collaboration with IMAS underscores our dedication to enhancing food security in Nigeria,” said Abdul Samad Rabiu, Chairman of BUA Foods Plc. “The new facilities will elevate our production of high-quality flour and enable us to better serve the Nigerian market with top-tier products.”
Rabiu also emphasized the strategic importance of this investment in achieving BUA Foods’ goal of increasing its market share in Nigeria’s flour industry. The new mills will allow BUA Foods to meet diverse flour needs, further cementing its position as a key player in the Nigerian food sector.
BUA Foods’ revenue doubles in 2024
BUA Foods, a segment of the Nigerian-based BUA Group, comprises various subsidiaries including BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited. The conglomerate is majority-owned by Nigeria’s second-richest man, Abdul Samad Rabiu, and his son, Isyaku Naziru Rabiu.
In the first half of 2024, BUA Foods reported a 38 percent increase in profit after tax, rising from N95.19 billion ($60.47 million) in the first half of 2023 to N130.93 billion ($83.2 million). This growth was driven by strong sales in sugar, flour, and pasta, contributing to a 110 percent surge in the group’s revenue, which climbed from N320.9 billion ($204 million) to N672.3 billion ($427.2 million).
BUA Foods’ robust financial performance has also been reflected in its asset base, which grew from N1.07 trillion ($680.2 million) at the end of 2023 to N1.1 trillion ($700 million) by June 30, 2024. Additionally, retained earnings rose significantly from N254 billion ($161.5 million) to N384.9 billion ($244.5 million) during the same period, further solidifying BUA Foods’ status as a leading player in Nigeria’s food industry.
