How BUA Foods keeps to its brand promise
By Amos Oladele
BUA Foods Plc, a leading food business in the fast moving consumer goods, FMCG sector of the Nigerian economy has given a very detailed insight into how the high performing company is keeping very tenaciously to its brand promise of enhancing and advancing food security in Nigeria and across Africa.
At a media parley held recently at its Victoria Island, Lagos head office, the Managing Director of the company, Engr. (Dr.) Ayodele Abioye, disclosed that “Food security is the most important mission at the heart of BUA Foods’ existence; it shapes the company’s strategic direction and operational ethos towards fulfilling Africa’s food demands and improving the well-being of individuals and communities”; adding that “This steadfast commitment to food security has distinguished BUA Foods and positioned it as an important player in Nigeria’s dynamic food sector and beyond”.
This, Abioye emphasized, has resulted in the Company achieving a record market capitalization of over ₦5 trillion post-consolidation and listing on the Nigerian Exchange (NGX) – only two years ago!
He stressed that BUA Foods combines grit and resilience to stay committed to its promise and to drive value towards sustainable growth and market leadership. Shedding more light on this, the managing director explained that, the board and management of the company had, first and foremost, built a solid foundation for it by strategically consolidating its diverse food businesses into a unified entity and listing it by introduction on the Nigerian Exchange (NGX) two years ago.
This strategic decision, he said, did not only streamline operations but also bolstered the company’s capacity to capitalise on the growth opportunities and export potential presented by the African Continental Free Trade Area; and that by consolidating its business divisions, including Rice, Pasta, Flour, Edible Oils, and Sugar, alongside two wholly owned subsidiaries, BUA Foods plays a pivotal role in driving economic growth, producing high-quality foods and creating long-term value for all stakeholders.
All of the above, Abioye affirmed has resulted in “stellar financial results” for the company. He disclosed that 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; adding that “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; and, additionally, profit after tax soared from ₦69 billion to ₦111 billion, reflecting robust operational performance and effective cost management strategies; adding that “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”.
Still part of the commitment, Engr. Abioye stated that over the past two years, BUA Foods has remained steadfast in its commitment to delivering value to stakeholders across the capital market ecosystem, thus reinforcing its dominance and market leadership; and that 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.
He added that “Furthermore, BUA Food’s; proactive approach has enhanced portfolio’s value and profitability for institutional and retail investors, resulting in 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”; adding, “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”.
This company’s commitment to its mission and brand promise is further illustrated by the fact that even its corporate social responsibility efforts are tied to its core mission, as its MD disclosed. Said he, “Indeed, BUA Foods offers another example of a great company tying its corporate social responsibility efforts to its core mission by committing over N500 million in several engagements with communities, NGOs, and noble endeavours across Nigeria”.
Little wonder that its visionary Chairman, Alhaji Abdul Samad Rabiu, submitted matter-of-factly speaking, that “As BUA Foods embarks on its journey towards continued success, it remains firmly poised to navigate future growth and expansion with confidence and foresight. With a solid foundation and a clear vision guiding our pathforward, we plan to leverage emerging opportunities to deliver sustained value for the foreseeable future”.
