…pays out ₦13 dividend as profit jumps 137%, share price up 115%
…bets big on capacity, targets self-sufficiency
BUA Foods PLC has reported a 109% surge in revenue to ₦1.53 trillion for the full year ended December 31, 2024, driven by robust volume growth and pricing gains across its key product segments—sugar, flour, pasta, and rice.
Profit after tax soared 137% to ₦265.9 billion, despite rising input costs, and foreign exchange losses, while Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) jumped 123% to ₦481.7 billion. Earnings per share rose 137% from ₦6.23 in 2023 to ₦14.78.
At its fourth Annual General Meeting (AGM) held Thursday in Abuja, shareholders approved a ₦13 per share dividend, a 136% increase from the previous year’s ₦5.50.
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The company’s share price appreciated by 115% during the year, closing at ₦415, up from ₦193.40, lifting BUA Foods’ market capitalisation to ₦7.47 trillion from N3.48 trillion.
Abdul Samad Rabiu, Chairman of the Company, attributed the performance to strategic resilience amid macroeconomic headwinds. “We remained steadfast in our operations and achieved notable progress on key strategic initiatives geared towards addressing food supply challenges and promoting food security,” he told shareholders.
“As part of our strategic growth roadmap, we have initiated a significant expansion of our pasta production facility. This will introduce nine new long-cut pasta lines, effectively doubling our annual capacity.”
Rabiu also disclosed a major expansion in flour capacity. “We have also planned a major capacity expansion for our flour division with four state-of-the-art wheat milling plants. This initiative will boost our milling capacity significantly. Furthermore, our sugar agricultural project is on track for delivery given the need to accelerate its completion,” he said.
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“Upon delivery, these projects will not only strengthen our manufacturing capabilities and reinforce our market leadership but will also create new job opportunities, contributing positively to national economic development.”
Looking ahead, Rabiu said the company remains focused on helping government drive its food security quest, as well as long-term sustainability. “As we navigate an evolving business landscape, we remain confident in our ability to seize opportunities, manage risks, and drive long-term sustainable growth,” he stressed.
In his speech, Ayodele Abioye, Managing Director, reinforced the operational strategy behind the company’s performance. “BUA Foods’ strategic investments in capacity expansion, market penetration, and product diversification have been key drivers of our resilient growth amid a volatile economic environment over the past year.
“Our ability to remain both focused and adaptable has enabled us to deliver on our strategic priorities. Importantly, this success is the result of a collective effort from our shareholders and board to our suppliers, employees, and customers, whose commitment continues to be fundamental to our enduring performance”, he said.
Abioye said growth was broad-based across product lines, with volume and pricing lifting results. Sugar contributed 48% to revenue and grew 74% year-on-year to ₦735.5 billion.
Flour revenue rose 172% to ₦589.6 billion, driven by increased volume and price adjustments, while pasta revenue climbed 125% to ₦197.2 billion on strong consumer demand. The rice business, though facing supply challenges, grew revenue by 167% to ₦5.6 billion.
On pricing concerns, Abioye noted the company’s deep commitment to affordability.
“What we have been doing is to drive our internal efficiency to optimize costs so that the end users can afford our products.”
Kabiru Rabiu, Group Executive Director, BUA Group and Non-Executive Director, BUA Foods, said the share price performance directly reflected the business fundamentals.
“In 2024, the business did over ₦1.5 trillion in revenue with a profit of over ₦265 billion. There are not a lot of companies in Nigeria that make that kind of growth in a short span of time,” he told journalists after the AGM. “We are Nigerians, and we believe we have the responsibility to contribute to food security in this country.”
He explained that supply-driven inflation in food could be mitigated through increased local production, noting that BUA has been expanding food processing capacity and investing hugely in backward integration.
“For example, our rice mill in Kano today is one of the largest in the country. We process over 100,000 tonnes of wheat monthly. That increase in supply into the domestic market is really putting prices down.”
On power constraints, he noted that the company generates most of its electricity and is not dependent on the grid. “Gas supply remains a challenge in some areas like Port Harcourt, but we are investing heavily to address that,” he however announced.
At the meeting, shareholders welcomed the results and praised the board’s strategy.
Bisi Bakare, National Coordinator, Pragmatic Shareholders Association said the consistency of BUA Foods’ dividend payout was commendable.
“We are delighted by the dividend payout of ₦13, a huge leap from the dividend paid last year. The company is doing well; we trust the management team to keep up the good work and sustain this trajectory.”
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Faruk Umar, President, Association for the Advancement of the Rights of Nigerian Shareholders, equally lauded the results. “We are witnessing remarkable growth. I want to thank the Board of Directors and Management Team for their efforts in ensuring the company’s growth. Please keep it up,” he said.
On his part, Patrick Ajudua, President of the New Dimension Shareholders Association, encouraged a wider participation. “I think whoever has not invested in BUA Foods is missing out. I encourage other investors to add BUA Foods shares to their portfolio so they can reap tangible benefits. I am honestly happy to be a shareholder of the company.”
At the meeting, all resolutions, including the re-election of directors and remuneration approvals, were passed.
