Shareholders of BUA Foods Plc will receive a dividend of N99 billion for the financial year ending December 2023, representing a reward of N5.50 for each share held.
The board of directors of BUA Foods Plc has, pursuant to the powers vested in it by the provisions of Section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria, recommended a dividend of N5,50 per share for the financial year 2023.
The dividend represents a growth of 22.22% over N4.50 per share paid by the company in 2022.
This was contained in the company’s corporate action announced at the Nigerian Exchange Limited (NGX)on Monday and obtained by Nairametrics.
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Still subject to shareholders’ approval
According to the company, the dividend is subject to the appropriate withholding tax and will be paid to shareholders whose names appear in the register of members at the close of business on 23rd August 2024.
This will be presented at the next Annual General Meeting for shareholders’ ratification and approval
The statement signed by the company noted that on 26th September 2024, dividends will be paid electronically to shareholders whose names appear on the Register of Members as of 23rd August 2024 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
Advice to shareholders: Shareholders who are yet to complete the e-dividend registration are advised to download the registrar’s E-Dividend Mandate Activation Form, which is also available on the website of the registrars.
Financial performance
Nairametrics reported that Nigeria’s most capitalized consumer goods company, BUA Foods has posted a profit after tax of N112.1 billion, representing a 22.7% increase from the N91.3 billion reported in 2022.
According to the group’s audited financial statement for 2023, it recorded a revenue of N729.4 billion, marking a 74.4% growth from the N418.3 billion posted in 2022.
The group recorded an impressive financial performance despite a humongous FX loss of N81.9 billion accrued in 2023 due to the devaluations of the Naira.
This is attributable to a significant increase in revenue across various product lines, including bakery flour, fortified sugar, and bran, as well as the introduction of BUA Rice to the market.
Also, the group recorded a pre-tax profit of N108.1 billion, however, with a deferred tax credit of N4.0 billion, the group’s profit after tax hit N112.1 billion.
Fortified sugar emerged as the primary revenue driver for the group, with BUA Foods registering N339.7 billion in sales from fortified sugar, marking a remarkable 162.8% increase from the N129.2 billion reported in 2022.
There was a remarkable surge in revenue made from the sale of bakery flour, as the group made N200.2 billion from bakery flour, marking a 151% growth from the N79.7 billion reported in 2022. BUA Foods also recorded N2.1 billion in revenue from its rice business. Then, 95.5% of the group’s revenue came from sales in Nigeria, a notable increase from the 86% reported in 2022.
The significant 64% rise in the cost of sales was primarily driven by a substantial 72% rise in the cost of raw materials consumed, with the group spending about N447.6 billion on raw materials in 2023, compared to the N260.2 billion posted in 2022.
The increase in interest rates throughout 2023 resulted in a significant 157.6% surge in the group’s interest expenses, with an interest expense of N18.6 billion recorded, marking a substantial rise from the N7.2 billion reported in 2022.
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