Table of Contents
Key Points
- BUA Foods partners with Italian firm FAVA to double pasta production capacity from 400,000 to 900,000 tonnes annually, enhancing market presence.
- The expansion includes nine new production lines for long-cut pasta, supporting Nigeria's food security amid rising demand for staple products.
- BUA Foods reports a 38% profit increase in H1 2024, driven by strong sales in sugar, flour, and pasta, boosting revenues significantly.
BUA Foods Plc, a Lagos-based food conglomerate majority-owned by Nigeria’s third-richest man Abdul Samad Rabiu, has signed a strategic partnership with Italian pasta equipment manufacturer FAVA to increase its pasta production capacity.
The agreement will see BUA Foods more than double its current output from 400,000 tonnes to 900,000 tonnes per year.
The expansion, announced in a statement to the Nigerian Exchange (NGX), is part of BUA Foods' efforts to strengthen its market position in Africa’s competitive pasta industry while contributing to Nigeria’s food security amid rising demand for staple foods.
Capacity expansion and new technology
As part of the agreement, BUA Foods will install nine new production lines dedicated to long-cut pasta, increasing its capacity by 400,000 tonnes annually.
This aligns with the company’s broader strategy to enhance food security and meet the growing demand for pasta in Nigeria and across Africa.
In addition to the FAVA partnership, BUA Foods signed an agreement with Italian firm Martini to supply advanced packaging equipment, further streamlining its distribution capabilities and improving product delivery across Nigeria and neighboring markets.
Chairman Abdul Samad Rabiu: Expanding to meet demand
Chairman Abdul Samad Rabiu, Nigeria’s second-richest man, emphasized that the expansion reflects BUA Foods’ commitment to addressing food shortages while ensuring high product standards. “Our capacity expansion will allow us to serve our markets better while contributing to alleviating food shortages in the country,” Rabiu said.
BUA Foods is also expanding its flour production, with a new deal with a Turkish firm set to boost milling capacity to 2.5 million tonnes per annum, a move driven by surging demand for flour and pasta amid supply chain disruptions and inflationary pressures in Nigeria.
Record profit growth fuels expansion
BUA Foods is expanding following strong financial results, with profit after tax rising 38 percent to N130.93 billion ($83.2 million) in the first half of 2024, up from N95.19 billion ($60.47 million) a year earlier.
Revenue surged 110 percent to N672.3 billion ($427.2 million), driven by sales of sugar, flour, and pasta. This expansion positions BUA Foods to challenge key competitors in Nigeria's pasta market, including Flour Mills Nigeria Plc and Dangote Foods.
