BUA Food Plc, has reiterated its commitment in driving value towards sustainable growth and market leadership.
The company stated this at its press briefing held in Lagos. This is has the company market capitalisation rose by N4.98 trillion from N720 billion in 2021 to over N5.7 trillion in 2024, solidifies the company’s position as the fifth largest listed entity on the Nigerian Exchange (NGX) by market capitalisation, further underscoring its resilience and enduring market prominence.
BUA Good said “food security is the most important mission at the heart of BUA Foods’ existence.
It shapes the company’s strategic direction and operational ethos towards fulfilling Africa’s food demands and improving the well-being of individuals and communities.
“This steadfast commitment to food security has distinguished BUA Foods and positioned it as an important player in Nigeria’s dynamic food sector and beyond. The company has achieved a record market capitalization of over N5 trillion post-consolidation and listing on the Nigerian Exchange (NGX).”
According to the company, driven by a strategic vision to fortify its presence in the agribusiness and food processing sector, BUA Foods strategically consolidated its diverse food businesses into a unified entity and listed by introduction on the Nigerian Exchange (NGX) two years ago.
“This strategic decision not only streamlined operations but also bolstered the company’s capacity to capitalise on the growth opportunities and export potential presented by the African Continental Free Trade Area.”
For the financial year ended 2023 as contained in its unaudited financial result, BUA Foods achieved a remarkable financial performance, with total revenue reaching N728 billion, marking a 74 per cent year-on-year increase.
Operating profit expanded from N79 billion to N213 billion between 2021 and 2023, respectively while profit before tax surged to N252 billion, compared to N102 billion in the previous year.
Additionally, profit after tax soared from N69 billion to N111 billion, reflecting robust operational performance and effective cost management strategies.
While, total assets witnessed substantial growth, rising from N59 billion in 2021 to N734 billion in 2023, indicating the company’s strengthened financial position and operational scale.
The managing director of BUA Foods, Ayodele Abioye said “over the past two years, BUA Foods has remained steadfast in its commitment to delivering value to stakeholders across the capital market ecosystem, thus reinforcing its dominance and market leadership.
“By facilitating increased liquidity at the stock exchange and providing impressive returns to investors through capital gains and prompt 100 per cent dividend pay-outs, the company has bolstered confidence among shareholders and investors alike.
He noted that the five business divisions of BUA Foods have demonstrated remarkable growth, adding that BUA Foods embarked on developing its rice business during this period, with initial production capacity of 200,000 MT leveraging its commitment to utilising locally sourced raw materials.
“This strategic approach not only supports national development plans but also fosters the advancement of Nigeria’s local rice industry, ultimately enhancing the economic prospects of local communities,” he said.
Chairman of BUA Foods, Abdul Rabiu noted that, “as BUA Foods embarks on its journey towards continued success, it remains firmly poised to navigate future growth and expansion with confidence and foresight. With a solid foundation and a clear vision guiding our path forward, we plan to leverage emerging opportunities to deliver sustained value for the foreseeable future.”
He further said the Company is committed to enhancing internal efficiencies to optimise costs and enhance profitability, ensuring a robust financial performance moving forward.
Also, BUA Foods MD stated, “in 2024 we believe our business structure and strategy position us to continue winning in the marketplace. We will focus on driving top-line growth in alignment with our established growth model, leveraging ongoing capacity expansion with product/pack innovation for sustainable growth in the short and long-term.”
BUA Foods is a food business with well-diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The company owns strategically located plants across Nigeria and a cordial alliance with local stakeholders in host communities.
