Abdul Samad Rabiu, Chairman of BUA Foods Plc, on Thursday in Abuja announced plans by the company to further broaden its products and revenue base in the years ahead for the benefit of all stakeholders, including shareholders.
Addressing shareholders at the company’s maiden Annual General Meeting held in Abuja, Rabiu specifically announced plans to recommence a rice division by the end of this year, “and edible oils in 2024 to further accelerate revenue generation.”
In addition, he spoke of “ongoing investments in export infrastructure, supported by strategically located ultramodern plants, will improve our capacity to serve Africa and other markets.”
“We will continue to invest in the future with a clarity of purpose for shareholders and make a difference through our sustainable business model driven by a committed team executing well-thought strategies for growth and value creation as we continue to lead with purpose,” he stressed.
Commenting further on the growth ambitions, Rabiu assured that “our expansion plans have positioned us to provide a more diversified revenue stream in the years ahead, with a positive and demonstrable impact to create value for the business and shareholders. We are expanding our plant capacities across the entire business and investing in a backward integration programme for sugar with farmers in host communities.”
At the AGM, the shareholders approved the payment of ₦63bn, which translates to a dividend of ₦3.50 per share for those whose names were on the register of members as of July 13, 2022, as recommended by the board for the financial year ended December 31, 2021, for payment on August 4.
The audited financials presented for consideration at the meeting showed from across BUA Food’s three revenue-generating divisions- Sugar, Flour, and Pasta, showed that operating profits grew by 56% to ₦79.9bn, Profit Before Tax (PBT) increased by 63.96% to ₦77.5bn, while net profit stood at N69.8bn, up by 97% year-on-year.
Commenting on the performance, Rabiu said the period under review was pivotal in the company’s history, as “it charted a new path for us to fulfil our vision to meet Africa’s growing demand for food by promoting food security and nourishing lives. Our bold decision to consolidate and restructure our business strengthened our productivity and improved our efficiency as a food value chain company.
“Our business has remained resilient despite global economic challenges and plays a significant role in the FMCG industry. This was evidenced by the positive financial results recorded for the fiscal year ended 31 December 2021,” he stressed.
Also commenting, the company’s Managing Director, Engr. Ayodele Abioye described 2021 as an exciting year for BUA Foods, with “the restructuring of our business improved our position as a leading player producing and distributing high-quality, accessible, competitively priced and innovative food products.
“It strengthened our vision to lead confidently even as we expand our footprint across West Africa and provide end-to-end supply chain efficiency while leveraging the strategic location of our ultramodern plants.”
“Our focus is on driving sustainable growth from our strong portfolio to create good investment returns for shareholders. This aligns with our plan to create liquidity, enhance visibility, and expand access to capital for future growth. We worked with some of the best advisers in the industry to achieve these milestones, and I thank them all for their support,” he stressed further.
Commenting on the result, Tunji Bamidele, a shareholder, commended the company on its exceptional performance for the fiscal year 2021. He added that despite global security challenges, the company grew profits from 39 billion in the previous year to 69 billion in 2021, indicating a strong commitment to alleviating food security challenges.