BUA Foods Plc, one of Nigeria’s leading food manufacturing giants, has announced plans to expand its production capacity as part of its commitment to boost food sufficiency and strengthen its market leadership.
The announcement was made during the company’s 4th Annual General Meeting (AGM), where shareholders were rewarded with a N13 per share dividend – a 136% increase compared to last year’s payout of N5.50.
Speaking at the AGM, Abdul Samad Rabiu, Chairman of BUA Foods, said the improved dividend was driven by the company’s exceptional financial performance for the year ended December 31, 2024.
“This was driven by the positive growth recorded in the financial year ended 31 December 2024 during which BUA Foods posted N265.9 billion in profit after tax, marking a 137% growth from N112 billion recorded during the corresponding period in the previous year,” Rabiu stated.
Massive Expansion of Pasta and Flour Divisions
Rabiu also unveiled bold expansion plans designed to double capacity and meet rising local and export demand:
“As part of our strategic growth roadmap, we have initiated a significant expansion of our pasta production facility. This expansion will introduce nine new long-cut pasta lines, effectively doubling our annual capacity. We have also planned a major capacity expansion for our flour division with four state-of-the-art wheat milling plants.
“This initiative will boost our milling capacity significantly. Furthermore, our sugar agricultural project is on track for delivery given the need to accelerate its completion. Upon delivery, these projects will not only strengthen our manufacturing capabilities and reinforce our market leadership but will also create new job opportunities, contributing positively to national economic development.”
Strengthening Operations and Exports
Group Executive Director, Kabiru Rabiu, highlighted the company’s operational focus for the coming years.
“In the medium term, our priorities include expanding our export footprint, accelerating our backward integration project, and driving product innovation. We are also expanding capacity, diversifying our portfolio, accelerating digital transformation across the supply chain, and embedding ESG practices to ensure sustainable growth,” he said.
Shareholders Laud Consistency
Managing Director, Engr. Ayodele Abioye, noted that BUA Foods’ consistent investments in production systems and market penetration had enabled the company to thrive despite economic volatility.
Shareholders also expressed confidence in the company’s leadership. Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders’ Association, praised the board for its commitment to rewarding investors.
“The consistency of BUA Foods dividend payout is quite commendable. We are delighted by the dividend payout of N13, a huge leap from the dividend paid last year. The company is doing well; we trust the management team to keep up the good work and sustain this trajectory,” she said.
