Key Points
- Abdul Samad Rabiu to receive $143.6 million dividend from BUA Foods, a significant increase from $79.4 million in 2023.
- BUA Foods announces a 140% dividend hike, from N5.5 to N13 per share, reflecting strong profit growth.
- BUA Foods reports a 109% revenue increase, driven by growth in bakery flour, sugar, and other product lines.
Abdul Samad Rabiu, Nigeria’s third-richest person, is set to receive a dividend payout of $143.6 million from BUA Foods Plc, the country’s most valuable food company and a key part of his BUA Group conglomerate.
This dividend, which will be paid on September 25, is the lion’s share of the proposed N234 billion ($152.43 million) payout for the year and represents a substantial increase from the $79.4 million dividend he received in 2023.
BUA Foods sees 140% dividend increase
BUA Foods, a major player in Nigeria’s food industry, operates key businesses including BUA Sugar Refinery, BUA Oil Mills, IRS Flour, IRS Pasta, and BUA Rice. Abdul Samad Rabiu and his son, Isyaku Naziru Rabiu, together hold a 94.25 percent stake in the company, which has a market capitalization of $4.9 billion. While Abdul Samad owns 92.63 percent of BUA Foods, Isyaku holds a 1.62 percent stake, amounting to 291.34 million shares.
The company’s board of directors recommended a N13 dividend per share for the fiscal year ending December 31, 2024, marking a substantial 140 percent increase from the N5.5 per share paid in 2023. This rise reflects the company’s strong financial results, with profit jumping from N112.1 billion ($72.9 million) in 2023 to N266 billion ($173 million). The growth was fueled by robust consumer demand and strategic pricing across its product range.
BUA Foods revenue jumps 109% in 2024
The company’s revenue saw a remarkable 109.29 percent increase, climbing from N729.44 billion ($484.8 million) to N1.53 trillion ($1.02 billion). A large portion of this growth came from bakery flour, which generated N544.88 billion ($362.2 million), while fortified sugar sales grew by 67.04 percent, reaching N567.39 billion ($377.1 million).
Additionally, other product lines, including non-fortified sugar, sugar molasses, semolina, maize, pasta, and wheat bran, all played a role in driving the company’s impressive performance. With ongoing expansion and a diverse product range, BUA Foods is poised to continue benefiting from the increasing demand in Nigeria’s food market.
BUA Foods sees growth in retained earnings
Although BUA Foods experienced a slight increase in total assets—from N1.07 trillion ($696 million) to N1.095 trillion ($712.2 million)—its retained earnings and equity showed impressive growth. Retained earnings rose from N254 billion ($165 million) to N421 billion ($273.8 million), while equity increased from N262.06 billion ($171.61 million) to N429 billion ($279 million), underscoring the company’s financial strength as it looks ahead.
Crédito: Link de origem