BUA Foods Plc, a leading manufacturer of food products has announced plans to expand its production capacity as part of efforts to boost food sufficiency, while declaring a dividend of N13 per share to shareholders.
Speaking at the 4th Annual General Meeting of the company, Chairman of BUA Foods, Abdul Samad Rabiu stated that the dividend of N13 per share represents a 136% increase from N5.50 paid in the previous year.
“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,” he explained.
Rabiu said “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.” he explained.
Also speaking, Group Executive Director of BUA Group, Kabiru Rabiu said the company is focused on stabilizing costs, optimizing operations, and strengthening market share.
“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 added.
Speaking on the dividend payout, Mrs. Bisi Bakare, National Coordinator Pragmatic Shareholders’ Association applauded the Chairman for his visionary leadership.
She said, “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.”
The President of the New Dimension Shareholders Association, Patrick Ajudua, also lauded the company’s consistent delivery of value to shareholders and encouraged other investors to consider adding BUA Foods shares to their portfolios.
At the AGM, all resolutions were approved by shareholders, including the re-election of directors and the approval of remuneration policies.