Nigeria’s third-richest person, Abdul Samad Rabiu, is poised to receive a dividend of N98.83 billion ($79.4 million) from his shareholding in BUA Foods Plc. The food conglomerate consolidated in late 2021 and declared an operational profit of N206.32 billion ($166.41 million) at the end of fiscal year 2023.
BUA Foods is the Nigerian BUA Group’s unified food business section. It includes the operations of BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice. Abdul Samad Rabiu and his son, Isyaku Naziru Rabiu, own a 99.8 percent share in the new food operation.
The 79.4 million-dollar dividend, which will be sent electronically into Rabiu and his son’s bank accounts from the group’s $210.48 million earnings in 2023, is part of the board of directors’ recommended cash distribution.
According to BUA Foods’ financial documents, the group’s profit increased by 75.6 percent year on year, from N117.49 billion ($94.77 million) in 2022 to N206.32 billion ($166.41 million) in 2023.
This is the company’s third consecutive yearly earnings gain since its shares launched on the Nigerian Exchange more than two years ago. The boost is due to a huge increase in sales of its key products, which include sugar, pasta, and bakery flour.
The group’s revenue in 2023 climbed by 74.36 percent, from N418.35 billion ($336.08 million) to N729.44 billion ($585.72 million), due to strong sales of non-fortified sugar, pasta, and bakery flour throughout the year, leading in a spike in profitability at the end of the year.
The board of directors suggested a final dividend of N5.50 (0.00442) per share, reflecting the company’s strong financial performance. Shareholders, including Abdul Samad Rabiu and his son, can anticipate the payoff to arrive in their bank accounts on September 26, 2024, assuming approval at the upcoming annual general meeting.
