BUA Foods Shareholders Approve N63bn Dividend, Commend Performance

Kayode Tokede 

The shareholders of BUA Foods, yesterday approved N63billion dividend, the highest payout in the Food and Fast-Moving Consumer Goods sector of listed companies on the Nigeria Exchange Limited (NGX).

The shareholders gave the nod at the company’s inaugural Annual General Meeting (AGM) for the financial year ended December 31, 2021 held in Abuja. The company had proposed a N3.50k per 1 ordinary share of 50kobo dividend payout, a sum of N63billiion.  

Speaking at the AGM, the National President of Starlite Shareholders Association of Nigeria, Mr Tunji Bamidele, commended the company on its exceptional performance for the fiscal year 2021.

He added that despite global security challenges, the company grew profits from N39 billion in the previous year to N69 billion in 2021, indicating a strong commitment to alleviating food security challenges. 

Addressing shareholders at the meeting, the Chairman of BUA Foods, Abdulsamad Rabiu, said: “2021 was a pivotal year in our corporate history. 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.”

Speaking further on growth ambitions, Rabiu said, “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 program for sugar with farmers in host communities. We plan to recommence our rice division by the end of 2022 and edible oils in 2024 to further accelerate revenue generation. Also, our 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.”

Also commenting, the Managing Director BUA Foods, Engr. Ayodele Abioye said: “2021 was an exciting year for us at BUA Foods. 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.”