BUA Foods, Led by Abdul Samad Rabiu, Record $610 Million Revenue with a Remarkable 74% Growth in 2023

BUA Foods Plc, a prominent food conglomerate under the BUA Group and predominantly owned by Nigeria’s second-richest man, Abdul Samad Rabiu, has announced an exceptional financial performance for the fiscal year 2023.

According to the recently unveiled unaudited financial statements, BUA Foods not only surpassed but set a new milestone by crossing the $610-million revenue mark during the reviewed period.

Representing the unified food business segment of the BUA Group, BUA Foods includes subsidiaries such as BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited.

Abdul Samad Rabiu, the chairman of BUA Group, along with his son, Isyaku Naziru Rabiu, jointly owns a 99.8-percent stake in BUA Foods, currently valued at over $5.04 billion. This substantial stake significantly contributes to Abdul Samad Rabiu’s impressive net worth of $8.48 billion.

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Record-Breaking 74% Revenue Surge in 2023:

The recently disclosed unaudited financial statements for the year ended December 31, 2023, unveil a substantial 74-percent surge in BUA Foods’ revenue. The revenue soared from N418.35 billion ($350.3 million) in 2022 to an impressive N728.48 billion ($610 million) in 2023.

This remarkable growth is attributed to a notable year-on-year increase of 53 percent in revenue generated from sugar sales, escalating from N275.2 billion ($230.4 million) in 2022 to N421.5 billion ($352.9 million).

Furthermore, the sales of flour products witnessed an extraordinary 152-percent surge, reaching N216.9 billion ($181.6 million) from N85.9 billion ($72 million). Sales from pasta products also experienced a robust increase of 54 percent, climbing to N87.9 billion ($73.6 million) from N57.2 billion ($479 million).

Despite challenges in the paddy supply chain for rice production, impacting full commercialization plans, BUA Foods’ rice division made its debut in 2023, contributing marginally to the overall revenue with a total of N2.1 billion ($1.75 million) generated from its operations.

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22% Profit Growth Amid Surging Expenses:

The double-digit surge in revenue, attributed to price adjustments and volume increases from capacity expansion for IRS, resulted in an 82-percent growth in operating profit. The figures rose from N117.4 billion ($98.34 million) in 2022 to N213.2 billion ($178.6 million) in 2023.

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Despite a 98-percent surge in selling and distribution expenses and a 116-percent surge in finance charges, the group’s profit grew by 22 percent. The profit rose from N91.3 billion ($76.2 million) in 2022 to N115 billion ($96.3 million) at the end of the group’s 2023 fiscal year.

BUA Foods demonstrated robust financial performance, with retained earnings and total assets reaching N253.44 billion ($212.2 million) and N734.07 billion ($614.7 million), respectively. This underscores the company’s resilience and strategic growth, solidifying its position as a key player in the Nigerian and African food industry.

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