Engr. Ayodele Abioye, the Managing Director of BUA Foods Plc has said that the substantial growth in share price, escalating from ₦40 to ₦320, has resulted in remarkable gains for investors, reaffirming the company’s steadfast commitment to the food industry.
Engr. Ayodele Abioye, the Managing Director of BUA Foods Plc at a press conference on the company’s business strategies and outlook for 2024 in Lagos.
He noted that BUA Foods’ proactive strategies have significantly contributed to enhancing portfolio value and profitability for both institutional and retail investors.
Market capitalization
Abioye highlighted that the extraordinary surge in market capitalization, soaring from ₦720 billion in 2021 to over ₦5.7 trillion in 2024, consolidates BUA Foods’ position as the 5th largest listed entity on the NGX by market capitalization.
He noted that this remarkable achievement further underscores the company’s resilience and enduring prominence within the market landscape.
- “By facilitating increased liquidity at the stock exchange and providing impressive returns to investors through capital gains and prompt 100% dividend pay-outs, the company has bolstered confidence among shareholders and investors alike.
- Furthermore, BUA Foods’ proactive approach has enhanced portfolio value and profitability for institutional and retail investors.
- The notable growth in share price, soaring from ₦40 to ₦320, has translated to remarkable gains for investors. This notable performance reaffirms BUA Foods’ unwavering dedication to the food industry. Moreover, the remarkable surge in market capitalization, from ₦720 billion in 2021 to over ₦5.7 trillion in 2024, solidifies the company’s position as the 5th largest listed entity on the NGX by market capitalization, further underscoring its resilience and enduring market prominence,” he said.
Strategic Expansions for Growth
Speaking on the company’s expansion Abioye said the five business divisions of BUA Foods have demonstrated remarkable growth.
- “Notably, the Flour business witnessed a substantial expansion in production capacity, increasing from 500,000 Metric Tonnes (MT) to 1,220,000 MT.
- At the same time, the Pasta division saw its capacity rise from 250,000 MT to 500,000 MT between 2021 and 2023.
- These growths translated into revenue increases, with Flour recording a remarkable 152% surge and Pasta achieving a notable 54% growth in 2023 relative to the previous year,” he said.
Additionally, Abioye said BUA Foods embarked on developing its rice business during this period, with an initial production capacity of 200,000 MT leveraging its commitment to utilising locally sourced raw materials.
He noted that the strategic approach not only supports national development plans but also fosters the advancement of Nigeria’s local rice industry, ultimately enhancing the economic prospects of local communities.
Abioye stated that despite maintaining a consistent production capacity of 1,500,000 MT since 2021, the Sugar business remains one of the largest sugar refineries in West Africa and achieved an impressive 53% growth in revenue, underscoring its significance within the region’s sugar industry landscape.
Financial results performance
On financial performance he said that having made crucial investments to expand and solidify its presence across-the-board, the Company’s business model and operational mechanism is geared towards optimizing capacity utilisation to achieve sustainable financial success.
- “For the financial year ending 2023 as contained in its unaudited financial result, BUA Foods achieved a remarkable financial performance, with total revenue reaching ₦728 billion, marking a 74% year-on-year increase.
- This growth trajectory underscores the company’s resilience and agility in navigating global and local economic challenges, with a notable compound annual growth rate of 30% since 2021.
- Operating profit expanded from ₦79 billion to ₦213 billion between 2021 and 2023, respectively while profit before tax surged to ₦252 billion, compared to ₦102 billion in the previous year.
- Additionally, profit after tax soared from ₦69 billion to ₦111 billion, reflecting robust operational performance and effective cost management strategies.
- Notably, total assets witnessed substantial growth, rising from ₦59 billion in 2021 to ₦734 billion in 2023, indicating the company’s strengthened financial position and operational scale,” Abioye said.
