At the 3rd Annual General Meeting (AGM) on Thursday, September 26, 2024, at the Transcorp Hilton Hotel in Abuja, the shareholders of BUA Foods Plc (referred to as “BUA Foods” or “the Company”) approved the proposed final dividend payment of ₦5.50k per share.
The giant of the local food manufacturing industry reported a 74.4% increase in revenue to ₦729.4 billion, indicating an impressive financial performance. Profitability held steady, proving its adaptability to changing market conditions, particularly as input costs increased. Profit after taxes increased by 23% from N91 billion in 2022 to ₦112 billion in 2023, demonstrating a remarkable year-over-year growth.
During the meeting, Abdul Samad Rabiu, the Chairman of the Board, addressed the shareholders and expressed gratitude for their unwavering support of the company’s common goal. He said that BUA Foods achieved great success as a result of their strategic focus on market penetration and capacity expansion combined with excellent governance.
According to him, the flour, pasta, and rice divisions saw impressive volume growth last year as a result of our successful expansion and commercialization of additional capacity. This contributed to an overall strong business performance. We will surpass all other pasta and flour milling companies in the nation with the completion of new facilities slated for next year, as well as recent strategic agreements.
“Our performance is a testament to the resilience of our business strategies, underpinned by a culture of strong corporate governance. We are also focused on the optimisation of our internal processes to maintain excellence in a fast-changing world. With the dedication of our Management and staff, we will continue to deliver exceptional value to all stakeholders.”
Speaking further on growth ambitions, Rabiu said, “In 2024, we remain focused on accelerating efforts towards the completion of our Backward Integration Project in line with the extended Federal Government’s Sugar Master Plan 2.0, aimed at attaining self-sufficiency in the sugar sector.
“Additionally, we seek to further address key challenges in Nigeria’s rice production industry by enhancing local production, empowering farmers, and promoting sustainable practices. This project will contribute to food security, economic development, and environmental sustainability.”
Also commenting, the Managing Director BUA Foods, Engr. Ayodele Abioye (PhD), said, “Despite the challenging macroeconomic environment, we made good progress across key strategic pillars of expanding capacity, markets, products, and package offerings as well as expanding business capabilities with a focus on operational excellence, innovation, and sustainable growth.
“We will continue to leverage technology, innovation, and operational efficiencies to drive value creation and maintain a solid growth trajectory. We are committed to reinforcing our leadership as a home-grown food business with purpose.”
Speaking on the dividend pay-out, a shareholder, Mrs. Bisi Bakare, expressed her delight at the exceptional performance of the company.
She remarked, “We shareholders are very pleased today to receive a final dividend of N5.50 kobo from BUA Foods.
“I appreciate the board for putting smiles on our faces in this hard time. Declaring a N5.50k dividend despite the economic climate is very commendable and this has encouraged us to want to invest more.”
Another shareholder of BUA Foods, Farouq Muktar, commended the management for the year-on-year growth of the indigenous food manufacturing company.
He said, “I am very happy because of your commitment and the positive results we keep recording. This performance is highly commendable.
“We appreciate your strategic thinking which is one thing Nigerians need at this time. I commend BUA Foods management for always making us happy and not letting Nigerians down.”
In 2023, BUA Foods won several awards from reputable organizations. Among the awards won are Food Company of the Year, Innovative Indigenous FMCG Company of the Year Award, and Fastest Growing Food Manufacturing Company of the Year.
