BUA Foods Announces Impressive Dividend Payout for 2024 Fiscal Year
BUA Foods Plc, a prominent player in the Nigerian food processing and manufacturing sector, has announced a substantial dividend payout for its shareholders following a strong financial performance in 2024. The company declared a final dividend of N13 per ordinary share of 50 Kobo each, representing a remarkable 136.36% increase compared to the N5.50 dividend paid out in 2023. This significant boost in dividend payout underscores the company’s robust financial health and its commitment to rewarding its investors. The dividend will be distributed to shareholders whose names appear on the Register of Members as of the close of business on August 21, 2025.
Abdul Samad Rabiu Poised to Receive Significant Share of Dividend Payout
As the majority shareholder of BUA Foods, billionaire businessman Abdul Samad Rabiu is set to receive a substantial portion of the declared dividend. With an 89.85% stake in the company, Rabiu’s share of the payout will be considerable, reflecting his significant investment in the company and his confidence in its continued growth and profitability. This substantial dividend payout further solidifies Rabiu’s position as a major player in the Nigerian business landscape.
BUA Foods Records Stellar Financial Performance in 2024
The impressive dividend payout follows a year of exceptional financial performance for BUA Foods. The company’s revenue for 2024 reached an impressive N1.53 trillion, marking a remarkable 109.46% surge from the N729.44 billion recorded in 2023. This substantial revenue growth highlights the company’s strong market position and its ability to capitalize on opportunities within the Nigerian food sector. The company’s product portfolio, which includes staples such as sugar, flour, pasta, rice, edible oils, and packaged foods, caters to a wide consumer base, contributing to its robust revenue generation.
BUA Foods’ profitability also witnessed a significant upswing in 2024. The company’s profit after tax more than doubled, soaring to N265.99 billion from N112.09 billion in the previous year. This remarkable profit growth demonstrates the company’s operational efficiency and its ability to translate revenue growth into bottom-line profitability. The strong financial results underscore the effectiveness of BUA Foods’ business strategies and its ability to navigate the challenges of the Nigerian economic landscape.
Increased Finance Costs and Charitable Donations
Despite the positive financial performance, BUA Foods experienced a significant increase in net finance costs, which rose by 91.26% to N187.78 billion from N98.18 billion in 2023. This increase was primarily driven by foreign exchange losses, amounting to N173.29 billion, along with increased interest expenses on overdrafts, borrowings, and lease liabilities. The volatile foreign exchange market likely played a role in these increased costs. However, the company’s robust profitability absorbed this increase without significantly impacting its overall financial health.
In line with its commitment to corporate social responsibility, BUA Foods made substantial charitable donations amounting to N860.2 million in 2024, a significant increase from the N89.9 million donated in 2023. This increase reflects the company’s dedication to giving back to the community and supporting various social causes. The substantial increase in donations suggests a heightened focus on community engagement and social impact.
BUA Foods’ Stock Performance and Future Outlook
At the close of the last trading session, BUA Foods’ shares were trading at N418 per unit. The company’s strong financial performance and generous dividend payout are likely to positively influence investor sentiment and potentially drive further share price appreciation. As the company continues to expand its operations and cater to the growing demand for food products in Nigeria, its future prospects appear promising. The robust financial results and the commitment to rewarding shareholders position BUA Foods as a compelling investment opportunity within the Nigerian stock market.
