BUA Foods Plc Demonstrates Robust Growth and Rewards Shareholders with Increased Dividends
BUA Foods Plc, a leading player in Nigeria’s food manufacturing sector and the most capitalized company on the Nigerian Exchange Limited (NGX), recently held its 4th Annual General Meeting (AGM) in Abuja. The AGM served as a platform to report on the company’s remarkable financial performance in the 2024 financial year and to announce a substantial dividend payout to shareholders. The company declared a dividend of N13 per share, a significant 136% increase from the N5.50 dividend paid in the previous year. This remarkable increase reflects the company’s strong financial performance and its commitment to rewarding its investors. The dividend announcement was met with widespread approval from shareholders, who commended the company’s leadership, growth trajectory, and commitment to shareholder value.
The impressive dividend payout is underpinned by BUA Foods’ stellar financial results for the 2024 financial year. The company reported a profit after tax of N265.9 billion, a remarkable 137% surge from the N112 billion recorded in 2023. This robust growth can be attributed to a combination of factors, including strategic investments in production systems, effective market penetration strategies, and a diversified product portfolio. These strategic initiatives have enabled BUA Foods to navigate a volatile economic environment and emerge stronger, further solidifying its position as a key player in the Nigerian food industry.
Chairman Abdul-Samad Rabiu expressed his gratitude to the shareholders for their unwavering support and highlighted the company’s continued efforts to address food security challenges in Nigeria. He emphasized the strategic importance of the company’s investments in expanding its production capacity and diversifying its product offerings. These investments are aligned with the company’s long-term vision of contributing to food security and meeting the evolving needs of the Nigerian market. Rabiu outlined key growth initiatives, including the expansion of the pasta production facility, which will double its annual capacity with the addition of nine new long-cut pasta lines.
Further bolstering its market position, BUA Foods is investing in the construction of four state-of-the-art wheat milling plants, significantly increasing its flour milling capacity. This strategic move aims to capitalize on the growing demand for flour-based products in Nigeria. Additionally, the company’s ongoing sugar agricultural project remains on track, further diversifying its product portfolio and strengthening its presence in the sugar market. These strategic investments are poised to drive future growth and enhance the company’s profitability.
Managing Director Ayodele Abioye echoed the Chairman’s sentiments, attributing the company’s success to strategic investments, market penetration, and product diversification. He acknowledged the challenging economic climate but emphasized the company’s resilience and adaptability in navigating these headwinds. Abioye extended his appreciation to all stakeholders, including employees, suppliers, and customers, for their contributions to the company’s sustained success. This collaborative approach, fostering strong relationships with all stakeholders, has been instrumental in BUA Foods’ impressive achievements.
Shareholders expressed their satisfaction with the company’s performance and the substantial dividend payout. Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association, lauded the Chairman’s leadership and the company’s commitment to shareholder value. Dr. Faruk Umar, President of the Association for the Advancement of the Rights of Nigerian Shareholders, highlighted the company’s remarkable growth, citing its N1.5 trillion revenue as a testament to its strong performance. Patrick Ajudua, President of the New Dimension Shareholders Association, commended BUA Foods for consistently delivering value to its shareholders and encouraged investors to consider adding the company’s shares to their portfolios.
BUA Foods’ 2024 financial results demonstrate a strong performance across key metrics. Revenue soared to N1.53 trillion, a significant increase from N729.4 billion in 2023. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) reached N481.7 billion, up from N215.7 billion the previous year. The EBITDA margin improved to 31.5% from 29.6% in 2023, reflecting improved operational efficiency. Earnings per share rose to N14.78 from N6.23 in 2023, further highlighting the company’s profitability. Net debt decreased to N360.5 billion from N551.5 billion in 2023, demonstrating prudent financial management. Total assets grew to N1.09 trillion from N1.07 trillion, indicating a healthy financial position. Capital expenditure, while lower than the previous year at N31.6 billion compared to N37.1 billion in 2023, still reflects significant investment in the company’s growth initiatives. Free cash flow decreased to N31.3 billion from N99.6 billion in 2023, likely due to the increased capital expenditure and working capital requirements associated with the company’s expansion plans. Overall, BUA Foods’ financial performance reflects a company on a strong growth trajectory, strategically positioned to capitalize on opportunities in the Nigerian food market and deliver value to its shareholders.
