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BUA Foods Hits $610 Million Revenue in 2023

BUA Foods Plc, a significant food company under the BUA Group and largely owned by Nigeria’s second-richest man, Abdul Samad Rabiu, has posted strong financial results for fiscal year 2023.

BUA Foods’ unaudited financial accounts show that the company exceeded $610 million in revenue during the reviewed period.

BUA Foods denotes the unified food business segment of the Nigerian-based BUA Group, encompassing subsidiaries such as BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited.

Rabiu, chairman of BUA Group, and his son, Isyaku Naziru Rabiu, control a 99.8 percent share in BUA Foods, which is currently valued at more than $5.04 billion. This interest adds to Abdul Samad Rabiu’s enormous net worth of $8.48 billion.

BUA Foods’ unaudited financial results for December 31, 2023 show a significant 74% increase in revenue. The revenue increased from N418.35 billion ($350.3 million) in 2022 to N728.48 billion ($610 million) in 2023.

This exceptional development is related to a 53 percent increase in revenue earned from sugar sales, which rose from N275.2 billion ($230.4 million) in 2022 to N421.5 billion ($352.9 million).

Additionally, sales of flour goods increased by 152 percent, hitting N216.9 billion ($181.6 million) from N85.9 billion ($72 million). Sales of pasta products increased by 54 percent, up to N87.9 billion ($73.6 million) from N57.2 billion ($479 million).

Despite issues in the paddy supply chain for rice production, which hampered full commercialization ambitions, BUA Foods’ rice business launched in 2023, adding just significantly to overall revenue with a total of N2.1 billion ($1.75 million) earned from operations.

The double-digit rise in revenue, owing to price modifications and volume increases from IRS capacity expansion, resulted in an 82% increase in operating profit. The values increased from N117.4 billion ($98.34 million) in 2022 to N213.2 billion ($178.6 million) in 2023.

Despite a 98% increase in selling and distribution costs and a 116% increase in finance charges, the group’s profit increased by 22%. Profit increased from N91.3 billion ($76.2 million) in 2022 to N115 billion ($96.3 million) by the end of the group’s fiscal year 2023.

BUA Foods had strong financial success, with retained earnings of N253.44 billion ($212.2 million) and total assets of N734.07 billion ($614.7 million). This demonstrates the company’s endurance and purposeful growth, cementing its place as a major player in the Nigerian and African food industries.

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