BUA Foods achieves 109% revenue growth, hits US$1.04B

NIGERIA – BUA Foods Plc, one of Africa’s leading food manufacturing and processing companies has reported a significant surge in revenue for the fiscal year 2024, soaring by an impressive 109.3% to ₦1.53 trillion (US$1.04 billion), up from ₦729.4 billion (US$586.6 million) in 2023.

Earnings Per Share (EPS) rose dramatically to approximately $0.01, reflecting a 145.3% increase from $0.004 in 2023.

Profit After Tax (PAT) also witnessed substantial growth, increasing by 145.2% to ₦274.95 billion (US$187 million) from ₦112.1 billion in the previous year.

Founder and Chairman Abdul Samad Rabiu attributed this success to BUA Foods’ unwavering commitment to innovation, operational efficiency, and market expansion.

He emphasized the company’s long-term vision of ensuring food security across Africa through strategic investments in capacity expansion, supply chain optimization, and enhanced operational efficiencies.

“BUA Foods’ exceptional growth in 2024 is a testament to our long-term vision of ensuring food security in Africa. We have continued to invest in capacity expansion, optimize our supply chain, and enhance operational efficiencies to meet growing market demand,” Rabiu stated.

On his part, Engr. (Dr.) Ayodele Abioye, the Managing Director expressed satisfaction with the company’s performance despite prevailing macroeconomic challenges.

He noted that the cumulative impact of BUA Foods’ expansion strategy has enabled the company to fulfill increased customer demand and enhance internal operational efficiencies. The company achieved an aggregate volume growth of 18% across its divisions, reinforcing its market position and industry leadership.

BUA Foods’ financial ratios also improved significantly, with the net profit margin, return on equity (ROE), and return on assets (ROA) rising to 18.01%, 62.77%, and 26.01%, respectively.

These achievements are particularly noteworthy given the depreciation of the Nigerian Naira, which lost approximately 46.88% of its value relative to the US dollar from December 2023 to December 2024.

Recent developments have further reinforced BUA Foods’ commitment to scaling its operations and enhancing its product offerings.

In August 2024, the company signed an agreement with Turkish firm IMAS to construct four new wheat flour mills, each with a capacity of 800 tonnes per day, totaling 3,200 tonnes daily.

This expansion is set to increase BUA Foods’ wheat flour milling capacity to 2.5 million metric tonnes per annum, enhancing its ability to meet rising market demand.

Additionally, in September 2024, BUA Foods announced plans to expand its pasta production by 400,000 tonnes annually at its Nigerian plant.

The addition of nine new production lines is expected to boost total annual pasta production to 900,000 tonnes from the current 500,000 tonnes. The company has partnered with Italy-based Fava SpA for manufacturing equipment and Martini srl for packaging solutions to facilitate this expansion.

To support these ambitious projects, BUA Foods secured a US$200 million corporate finance facility from the African Export-Import Bank in November 2024.

The initial installment of US$150 million was received on October 16, 2024. This funding is intended to enhance the company’s manufacturing facilities in Nigeria, aiming to increase exports to neighboring countries and within the African Continental Free Trade Area.

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