BUA Foods Plc, controlled by Nigeria’s third-richest man Abdul Samad Rabiu, increased revenue by 147.3 percent to N356.92 billion ($261 million) in Q1 2024, up from N144.32 billion ($105.4 million) the previous year. The good performance strengthens its position as Nigeria’s leading food conglomerate.
Sugar sales increased significantly, which drove revenue growth. Fortified sugar sales increased to N197.96 billion ($144.7 million) from N61.61 billion ($45 million), while non-fortified sugar sales grew to N39.92 billion ($29.2 million) from N31.41 billion ($23 million).
Sales in other areas also increased, with bread flour sales rising to N80.64 billion ($59.1 million) from N29.64 billion ($21.7 million) and pasta sales rising to N37.04 billion ($27.12 million) from N19.4 billion ($14.2 million).
The triple-digit revenue rise resulted in a 117.5 percent increase in operating profit, which grew to N104.72 billion ($76.4 million) from N48.15 billion ($35.1 million) in the previous quarter. Profit after tax increased by 37.9 percent to N55.82 billion ($40.7 million) from N40.47 billion ($29.5 million).
BUA Foods, a part of BUA Group, operates units such as BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited.
The company was listed in 2022 and has a sizable asset base, including the massive 20,000-hectare Lafiagi integrated sugar complex. Rabiu and his son, Isyaku Naziru Rabiu, own 99.8% of the food unit.
Building on a good 2023 with a 75.6 percent year-on-year profit, BUA Foods’ total assets increased marginally from N1.07 trillion ($781.6 million) as of December 31, 2023 to N1.08 trillion ($790 million) as of March 31, 2024.
However, total equity increased to N317.89 billion ($232.6 million) from N262.06 billion ($191.4 million), and retained earnings increased to N309.82 billion ($226.8 million) from N254 billion ($185.87 million), cementing the company’s position as a market leader in Nigerian profitability.
