BUA Foods Will Launch Its Rice Business In 2022

BUA Foods takes first two shipping vessels for sugar export operations
BUA Foods takes first two shipping vessels for sugar export operations

BUA Foods Plc has set 2022 as the target year for the start-up of its Rice business. According to the company, its rice milling plant has a capacity of 200,000 metric tons per year.

The start-up of its rice business is in addition to the 1.4 million tons of flour milling and 500,000 tons of pasta that are also expected this year.

“We are partners and key players in Nigeria’s rice revolution,” said Ayodele Abioye, acting Managing Director of BUA Foods Plc, at the company’s Facts Behind the Listing presentation on the Exchange on Tuesday.

BUA Foods Plc, which operates five business divisions and has two wholly-owned subsidiaries, was recently introduced on the Main Board of the Nigerian Exchange Limited (NGX) by way of introduction.

The listing of BUA Foods’ shares increased the NGX’s market capitalisation by N720 billion, increasing liquidity in the Nigerian capital market and providing opportunities for wealth creation.

BUA Foods Plc has risen the most on the Nigerian Exchange by 54.5 percent since its listing, with its share price standing at N61.80 at the close of trading on Monday, January 17.


The “Facts Behind the Listing” event was a participatory session with capital market stakeholders that provided a forum for discourse and information dissemination. Given that the market is driven by timely, relevant, and accurate information, interactions like the Facts Behind the Listing remain critical in all investors’ decision-making.


This disclosure comes on the heels of the company’s previous disclosure.

“Nigeria’s favorable demographic parameters drive current and future consumer market growth.” The question is, how will the company capitalize on this opportunity? To ensure leading market positions, it will leverage sustainable, efficient, and scalable platforms supported by a well-defined strategy,” Abioye said.

He stated that BUA Foods Plc is dedicated to environmental sustainability as well as supporting and investing in the host communities. “Completion and operation of additional capacity is expected to drive growth in revenue from 2022 and beyond,” he added.

According to Abdulrasheed Olayiwola, chief financial officer of BUA Foods Plc, who spoke about the company’s historical performance, the consolidated financial statements reflect upside potentials.

BUA Foods Plc’s revenue increased by 58 percent from N193 billion in the previous eleven months to November 2021.

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Also in the review eleven months to November 2021, BUA Foods Plc gross profit grew from N64.9billion in 2020 to N96.2billion in 2021; while Pre-tax profit (PBT) rose from N49.6billion in 2020 to N78.8billion in November 2021.


As expected, since its listing, BUA Foods has increased the visibility of the food manufacturing, processing and distribution company to investors on the African continent and across the globe.

“We recognize the efforts made by the Board and Management of BUA Foods towards this listing, as well as the roles played by all the professional parties to this transaction,” said Olumide Bolumole, Divisional Head, Listing Business, NGX, who represented Temi Poopola, CEO, NGX, during the Facts Behind the Listing. The Lead Financial Adviser is Stanbic IBTC Capital Limited.


Rand Merchant Bank Nigeria Limited and UCML Capital Limited, the transaction’s Joint Financial Advisers, APT Securities Limited and CardinalStone Securities Limited, the transaction’s Stockbrokers, and other transaction parties for their hard work and dedicated efforts toward the successful listing.


“Listing on the NGX Main Board requires a commitment to high standards of disclosure and corporate governance, and companies listed on the exchange benefit from being able to access capital from a large pool of local and international investors,” he said.

Following the admission of BUA Foods’ shares to the Exchange’s Main Board on Wednesday, January 5th, 2022, the company’s share price, market capitalization, and trading activity have all increased.


This communicates the market’s and investors’ alignment with the company’s strategic goal, as well as their willingness to participate in the growth story.

Furthermore, as of Friday, January 14th, BUA Foods became the largest company in the consumer goods sector by market capitalization, increasing the total equity market.

Last year, the Food, Beverage, and Tobacco sub-sector in Nigeria accounted for 37% of total manufacturing sector output and 5% of GDP. In Q3 2021, the sector grew by 5% year on year (YoY) and 14.6 percent quarter on quarter (QoQ), with 4.3 percent average growth since Q1 2020. The sector has a high potential for job creation, owing largely to the country’s favorable demographics and Nigerians’ consumption habits.”