BUA Foods posts 74.4% revenue surge to ₦729.4bn
BUA Foods Plc has announced an impressive revenue growth of 74.4%, reaching ₦729.4 billion for the 2023 financial year. The company’s Chairman, Alhaji Abdul Samad Rabiu, revealed this milestone during BUA Foods’ 3rd Annual General Meeting, held in Abuja on Thursday. Despite facing a challenging economic environment, the company achieved significant financial progress, positioning itself for continued growth in Nigeria’s competitive food and beverage sector.
Rabiu, in his presentation of the company’s Annual Report and Accounts, highlighted the strong performance across several financial metrics. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) saw a substantial increase of 83.6%, climbing to ₦215.7 billion from ₦117.5 billion in 2022. The company also recorded a notable profit growth, with net profit rising to ₦112.1 billion. This came amid rising costs for inputs, reflecting the company’s resilience in maintaining profitability.
Rabiu further disclosed that BUA Foods’ earnings per share (EPS) increased by 22.9%, moving from ₦5.07 in 2022 to ₦6.23 in 2023. In recognition of its consistent financial success, the company has proposed a dividend of ₦5.50 per ordinary share, a move aimed at rewarding its shareholders and affirming its commitment to delivering value. “This affirms our dedication to generating consistent returns for our shareholders, even in challenging times,” Rabiu said.
Addressing the challenges faced during the year, Rabiu identified key risks that the company had to navigate, including supply chain disruptions, foreign exchange volatility, and rising costs driven by inflation. He also pointed to the ongoing necessity of embracing digital transformation to stay competitive in the rapidly changing market landscape. “We have effectively managed these risks, ensuring operational continuity and minimizing disruptions,” he explained.
Beyond its financial performance, BUA Foods remains focused on expanding its product line and penetrating new markets. Rabiu shared the company’s strategic goals for product diversification and market expansion, with an emphasis on making its products more accessible and affordable for consumers at the retail level. This focus, he said, would enable BUA Foods to continue meeting the essential nutritional needs of its customers.
“As we navigate the dynamic business landscape, we are confident in our ability to unlock new opportunities, manage risks, and drive sustainable growth in the coming years,” Rabiu assured shareholders.
During the AGM, some shareholders raised concerns and made suggestions regarding corporate social responsibility initiatives, including the possibility of providing scholarships for the children of shareholders. Responding to these requests, Rabiu pledged that the company would explore the feasibility of such programs as part of its broader corporate responsibility efforts.
Rabiu also reiterated BUA Foods’ commitment to expanding its visibility and market share within the industry. He noted that the company is on track to becoming the largest producer of pasta in Nigeria, while also contributing to the government’s efforts to moderate food prices in the country.
In closing, Rabiu assured shareholders that the company remains steadfast in its mission to drive value and support the nation’s food security agenda, all while maintaining strong financial performance.
