BUA Foods Plc, controlled by Nigerian billionaire Abdul Samad Rabiu, has announced plans to pay out a final dividend of N99 billion ($79.53 million) to its shareholders. This move reflects the company’s good financial success in 2023.
The hefty dividend demonstrates the company’s commitment to compensating its shareholders after a strong performance in 2023. This success cements its position as one of the most profitable and high-performing players in the FMCG business.
BUA Foods’ operational profit increased 75.6 percent in fiscal year 2023, from N117.49 billion ($94.77 million) to N206.32 billion ($166.41 million). This demonstrates the company’s capacity to grow its product offerings while optimizing profitability in a competitive market scenario.
The group’s revenue increased by 74.36 percent during the year, rising from N418.35 billion ($336.08 million) to N729.44 billion ($585.72 million) in 2023. This increase was mostly driven by higher sales of non-fortified sugar and other food goods. The consequent increase in consumer demand resulted in higher pricing and income for the group.
The company’s exceptional performance also resulted in a 13.46% rise in shareholder equity. Its retained earnings increased by 13.95 percent, from N230.96 billion ($185.51 million) to N262.06 billion ($210.48 million), allowing it to declare a N99-billion ($79.53 million) dividend for the fiscal year ending December 2023, with a delivery expected for or before September 26, 2024.
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.
The complex includes a refinery, sugarcane crushing facilities, an industrial ethanol plant, schools, a developing housing estate, and a three-kilometer runway, all of which are integrated within a cultural heritage region. Total assets increased 76.28 percent year on year, from N607.22 billion ($489.67 million) in 2022 to N1,070.44 billion ($863.30 million) in 2023.
