BUA Foods crosses trillion-Naira revenue threshold on market momentum

• Offers N13 dividend on robust 2024 growth

Onome Amuge

BUA Foods Plc, a major player in Nigeria’s fast-moving consumer goods (FMCG) sector, recorded a financial milestone in the 2024 financial year, reporting a 109 percent increase in revenue that has propelled the company past the one trillion naira mark for the first time since 2021.

The company’s audited financial statements for the year ended December 31, 2024, showcased a revenue figure of N1.53 trillion. This represents a more than doubling of its 2023 revenue of N729.4 billion and marks the highest annual revenue achieved by the company since its listing on the Nigerian Exchange (NGX) in 2021.

The company’s report attributes the revenue expansion to a confluence of key factors. Notably, there was increased demand for BUA Foods’ core product lines, including its widely consumed sugar, flour, and pasta offerings within the Nigerian market. This surge in demand was effectively met by the company’s increased production capacity, allowing it to capitalise on market opportunities.

Despite headwinds from currency volatility, BUA Foods demonstrated significant bottom-line resilience. The company reported N178 billion exchange loss, a direct consequence of the continued depreciation of the Nigerian naira. However, this foreign exchange impact was more than offset by robust operational performance.

The audited financials reveal a 162.9 per cent increase in pre-tax profit, which jumped to N284.3 billion from N108 billion in the previous year. This strong underlying profitability translated into a 137.3 per cent growth in after-tax profit, climbing to N265.99 billion from N112 billion in 2023.

While sugar continues to be the dominant revenue driver for BUA Foods, the company’s latest results highlight the increasingly significant contribution of its other segments. Notably, the flour division experienced a substantial upswing, with revenue surging by 171 per cent year-on-year to N589.5 billion, a considerable increase from the N216.7 billion recorded in 2023.

The growth in the flour segment contributed over N541 billion to the total revenue in 2024, accounting for 35.5 percent of overall sales. This represents a notable expansion from the previous year’s contribution of 27.4 percent.

While sugar remains the bedrock of BUA Foods’ revenue generation, contributing a substantial N734.5 billion, representing 48 percent of the total revenue. This marks a decline in its proportional contribution, a development that analysts interpret as a tangible outcome of the company’s stated strategy of growing diversification and a deliberate shift towards its other product lines.

BUA Foods’ foray into the pasta market, with its branded products launched two years prior, continues to yield positive results. These offerings are reportedly gaining significant traction, particularly among price-sensitive consumers within Nigeria seeking alternatives to more expensive imported brands.

The pasta segment contributed N197 billion to the overall revenue, representing a notable 12.9 percent share of the total.

Furthermore, the audited financials reveal the overwhelming dominance of BUA Foods within Nigeria. Local sales accounted for a substantial 95.5 per cent of the company’s total revenue in 2024, highlighting its strong market presence and deep penetration across the country.

Notwithstanding the robust financial performance, BUA Foods was clearly operating within the challenging macroeconomic landscape that defined Nigeria in 2024. The company’s financial statements reveal a 15.1 percent rise in finance costs, reaching N21.65 billion, up from N18.81 billion in 2023. The primary driver of this increase was a significant N173 billion in foreign exchange losses, a direct fallout from the sharp devaluation of the Nigerian naira.

BUA Foods also dealt with escalating raw material costs and persistent currency-related headwinds. Raw materials accounted for a dominant 91 percent of its cost of sales, which itself saw a substantial 110 percent rise to N984.98 billion, compared to N468.98 billion in the prior year.

Furthermore, BUA Foods demonstrated effective operational management, successfully improving its operating profit margin by 376 basis points to 32 per cent in FY 2024. This improvement was reportedly supported by lower impairment losses and the implementation of tight control over operating expenses.

Also boosting its financial position, BUA Foods saw an improvement in its debt profile, with total debt decreasing to N391.9 billion compared to the previous year.

The company also reported an increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose 131.5 percent to N499.4 billion in FY 2024, up from N215.7 billion in 2023.

Ayodele Abioye, managing director of BUA Foods, remarked that the results underscored the company’s ability to navigate challenges with agility and its resilience, as it continues to create value for all stakeholders.

“Despite significant macroeconomic challenges, our business navigated the resulting impact on supply chain costs and foreign exchange losses effectively. The cumulative impact of our expansion strategy has enabled our capability to fulfill increased demand from our customers and enhanced internal operational efficiencies,” he said.

Abioye also expressed his optimism for operations and strategic investment initiatives affirming that the company will continue to be directed towards addressing food supply challenges.

On the back of its strong performance, the board of directors has proposed a dividend of N13 per share which is more than double the N5.50 paid in 2023.

Meanwhile, shareholders in BUA Foods Plc are set to receive a substantial windfall, with the company declaring a final dividend of N13 per ordinary share of 50 Kobo for the financial year 2024. This represents a 136.36 percent increase in dividend payout compared to the N5.50 kobo per share distributed in the preceding year, underscoring a period of robust financial performance for the food manufacturing giant.

Abdul Samad Rabiu, the billionaire businessman and majority shareholder of BUA Foods Plc, stands to receive a substantial portion of the company’s increased dividend payout. With an 89.85 per cent stake in the food conglomerate, Rabiu is positioned to benefit most from the announced N13 final dividend per share.

BUA Foods also announced that only shareholders whose names are registered in the company’s records by the close of business on August 21st, 2025, will be eligible to receive the final dividend of N13 per ordinary share.