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BUA Foods Plc has declared a dividend of N13 per share for its shareholders after the company’s 4th Annual General Meeting (AGM) held on Thursday at the Transcorp Hilton Hotel in Abuja. The payout marks a 136 per cent increase from the N5.50 per share given to investors in the previous year.
In a press statement signed by the Director of Marketing and Corporate Communications, Mr. Adewunmi Desalu, the company confirmed that the decision came on the back of strong financial results for the 2024 business year. According to the report, BUA Foods recorded a profit after tax of N265.9 billion, representing a 137 per cent jump compared to N112 billion reported in 2023.
The Chairman of BUA Foods, billionaire industrialist Abdul-Samad Rabiu, thanked shareholders for their consistent trust in the company. He explained that BUA Foods had made progress despite challenges in Nigeria’s economic environment, noting that the group remained focused on solving food supply problems while promoting food security across the country.
Rabiu revealed that the company would soon expand its pasta division by adding nine new long-cut pasta lines, a move that will double its annual production capacity. He also confirmed ongoing work on four new wheat milling plants aimed at boosting the flour business, while the company’s large-scale sugar project remains on track for completion.
Managing Director of BUA Foods, Mr. Ayodele Abioye, said the impressive results were made possible through investments in production systems, wider market penetration, and product diversification. He added that these strategies helped the company stay resilient in the face of inflation and high operating costs. Abioye also expressed appreciation to shareholders, employees, suppliers, and customers for their support in driving growth.
The AGM also witnessed comments from shareholders who commended the performance of the food giant. The National Coordinator of the Pragmatic Shareholders Association, Mrs. Bisi Bakare, praised Mr. Rabiu’s leadership and described the dividend payout as a reward for loyalty. The President of the Advancement of the Rights of Nigerian Shareholders, Dr. Faruk Umar, applauded the company’s N1.5 trillion revenue, calling it a major achievement in Nigeria’s food and beverage sector. Similarly, the President of the New Dimension Shareholders Association, Mr. Patrick Ajudua, urged more investors to consider buying BUA Foods shares, stressing the company’s consistency in delivering value.
According to the company’s audited financial report for 2024, revenue rose sharply to N1.53 trillion compared to N729.4 billion in 2023. Its earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed to N481.7 billion from N215.7 billion recorded a year earlier. The EBITDA margin improved to 31.5 per cent from 29.6 per cent in 2023. Earnings per share also grew to N14.78, up from N6.23 in 2023.
In addition, BUA Foods reduced its net debt to N360.5 billion, a decline from N551.5 billion in 2023, while total assets rose slightly to N1.09 trillion compared to N1.07 trillion the year before. However, the company reported lower capital expenditure of N31.6 billion, down from N37.1 billion in 2023, while free cash flow also fell to N31.3 billion from N99.6 billion.
At the AGM, shareholders approved all resolutions, including the re-election of directors and remuneration policies. With its rising profits, expansion projects, and steady dividend growth, BUA Foods remains one of the most capitalised companies on the Nigerian Exchange Limited and continues to play a central role in the country’s food production and distribution industry.
