BUA Foods Plc, a leading player in Nigeria’s food manufacturing sector and the most capitalized company on the Nigerian Exchange Limited, recently held its 4th Annual General Meeting (AGM) in Abuja. The meeting served as a platform to announce significant achievements, unveil ambitious expansion plans, and reward shareholders for their continued support. The company declared a substantial dividend payout, reflecting robust financial performance and its commitment to shareholder value.
The AGM’s highlight was the announcement of a N13 per share dividend, representing a remarkable 136% increase from the N5.50 distributed the previous year. This substantial increase underscores the company’s strong financial position and its dedication to rewarding investors. The impressive dividend payout was underpinned by BUA Foods’ remarkable financial performance in the 2024 financial year, reporting a profit after tax of N265.9 billion, a staggering 137% surge from N112 billion in 2023. This significant growth reflects the effectiveness of the company’s strategic initiatives and its ability to navigate a volatile economic environment.
Abdul-Samad Rabiu, Chairman of BUA Foods, expressed gratitude to shareholders for their unwavering support and highlighted the company’s unwavering commitment to addressing food supply challenges and bolstering food security in Nigeria. He articulated the company’s ambitious growth strategy, which includes a significant expansion of its pasta production facility, incorporating nine new long-cut pasta lines to double its annual capacity. Furthermore, BUA Foods plans to bolster its flour division with the construction of four state-of-the-art wheat milling plants, significantly augmenting its milling capacity and strengthening its market position. The Chairman also reaffirmed the company’s commitment to its ongoing sugar agricultural project, underscoring its dedication to vertical integration and ensuring a sustainable supply chain.
Ayodele Abioye, Managing Director of BUA Foods, attributed the company’s impressive growth to strategic investments in production systems, market penetration, and product diversification. These strategic initiatives, he emphasized, have been instrumental in the company’s resilience and success amidst a challenging economic landscape. He also expressed gratitude to shareholders, employees, suppliers, and customers for their invaluable contributions to the company’s continued success, highlighting the importance of collaborative efforts in achieving sustainable growth.
The AGM also provided a forum for shareholder feedback and engagement. Prominent shareholder representatives lauded BUA Foods’ performance and leadership. Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association, commended the Chairman’s leadership and expressed satisfaction with the dividend payout, recognizing the company’s commitment to shareholder value. Dr. Faruk Umar, President of the Association of the Advancement of the Rights of Nigerian Shareholders, highlighted BUA Foods’ remarkable growth, specifically citing the company’s N1.5 trillion revenue as an outstanding achievement, showcasing the company’s robust financial health. Patrick Ajudua, President of the New Dimension Shareholders Association, praised BUA Foods for consistently delivering value to shareholders, encouraging other investors to consider BUA Foods shares as a valuable addition to their portfolios.
The company’s 2024 financial results provide a detailed overview of BUA Foods’ robust performance and financial strength. Revenue soared to N1.53 trillion, a significant leap from N729.4 billion in 2023, demonstrating the company’s strong market presence and growth trajectory. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached N481.7 billion, up from N215.7 billion the previous year, indicating improved operational efficiency and profitability. The EBITDA margin also increased to 31.5% from 29.6% in 2023, further highlighting enhanced profitability. Earnings per share for the year stood at N14.78, a substantial increase from N6.23 in 2023, reflecting the company’s ability to generate value for its shareholders. Furthermore, BUA Foods successfully reduced its net debt to N360.5 billion from N551.5 billion in 2023, demonstrating prudent financial management and a commitment to a healthy balance sheet. Total assets grew to N1.09 trillion from N1.07 trillion the previous year, further reinforcing the company’s strong financial standing. While capital expenditure decreased to N31.6 billion from N37.1 billion in 2023, and free cash flow also declined to N31.3 billion from N99.6 billion in the same period, these figures are viewed in the context of the company’s overall strong financial performance and strategic investments.
In conclusion, BUA Foods’ 4th AGM showcased the company’s remarkable achievements in the 2024 financial year, its commitment to shareholder value through a significant dividend payout, and ambitious plans for future growth and expansion. The company’s strong financial performance, coupled with its strategic initiatives in production, market penetration, and product diversification, positions it for continued success in the Nigerian food manufacturing sector. The positive feedback from shareholders and the approval of all resolutions at the AGM further underscore the confidence in BUA Foods’ leadership and its strategic direction. The company’s continued focus on food security, coupled with its robust financial position, suggests a promising future for BUA Foods and its stakeholders.
