By Dipo Olowookere
The board and management of BUA Foods Plc have been praised for delivering value for shareholders, especially with its stock price appreciation since the company joined the Nigerian Exchange (NGX) Limited.
The organisation received the commendation at its second Annual General Meeting (AGM) last week at the Transcorp Hilton Hotel in Abuja.
At the event, shareholders approved the N4.50 dividend proposed by the board for the 2022 financial year, amounting to N81 billion.
One of the shareholders who spoke at the yearly gathering, Mr Umar Farouk, said the payment of the cash reward was commendable, applauding the board and management for upholding the vision, mission and values of the business as evidenced by the share price growth which has appreciated by almost 400 per cent since listing.
BUA Foods listed its shares by introduction on Wednesday, January 5, 2022, at N40 per share, and at the close of business on Friday, September 15, 2023, it traded at N185 per unit, representing a 362.5 per cent increase.
The Chairman of the firm, Mr Abdul Samad Rabiu, expressed his gratitude to the shareholders for their unwavering support, saying this has been instrumental in the company’s outstanding performance since its inception.
“Building on the successful merger of our different businesses in 2021, we achieved greater synergies and efficiency within the year, which resulted in a 30.9 per cent growth in our profit after tax.
“Despite the effects of global supply chain disruptions caused by the Russian-Ukraine conflict, we continued to intensify our effort in creating value and expanding our capabilities across all operating divisions; of particular mention is the commencement of commercial production of our Rice operations,” he noted.
“In respect of our expansion/growth strategy, we are commercializing our second flour & pasta plant with respective additional capacities of 800,000MTpa and 500,000MTpa, completing expansion work on our sugar refinery intended further to enhance our regional and global market expansion drive and looking forward to the contribution of our 200,000MTpa rice mill in Kano to the overall performance of the entity within the next fiscal year.
“We will continue to support the overall economic strategy of eat what we grow and grow what we eat through sustained investment in the expansion of our domestic cultivation of the raw material inputs through our 20,000-hectare sugar plantation in Lafiagi and our Paddy rice project to lessen dependence on imported raw materials,” the billionaire businessman added.
On his part, the Managing Director BUA Foods, Mr Ayodele Abioye, said, “We had a great financial year post-listing on the NGX, with our wealth creation journey remarkably boosted by the investing public and institutions’ participation. Year-end market capitalisation was N1.17 trillion from N720 billion.
“Despite the unending economic headwinds, our business delivered strong financial results characterized by revenue growth of 25.5 per cent to N418 billion from all operating divisions.
“Gross Profit grew by 29.0 per cent to N132.7 billion, while net profit grew to N91.3 billion from N69.8 billion in 2021. Earnings per share went up to N5.07, compared to N4.24 in the full year 2021.
“We will continue to drive our business growth, leveraging the commercialisation of additional capacities in our flour & pasta division as well as activating additional revenue generation from our rice division with a sustained focus on deepening our local and export market.
“We target to deliver double-digit growth across our core financial and operational performance metrics.”
