More Money for Rabiu as BUA Foods Profit Rises by 77%, Sales Hit N144 Billion in 3 Months

• BUA Foods has announced a significant increase in its profit margin for the first quarter of the year.
• The company's financial report shows a 60% rise in profits, with sales hitting N144 billion in just three months
• Owned by the second richest man in Nigeria, Abdulsamad Rabiu, BUA Foods operates seven major business segments

BUA Foods, one of Nigeria's leading food and beverage companies, recorded an impressive first three months of the year when other companies struggled.

Data obtained from the company's financial report submitted to NGX showed that in its first quarter report for 2023, the company reported a turnover of N144.318 billion, up by 60.23% from N90.067 billion reported in the same period in 2022.

Additionally, its profit after tax grew year on year by 77.15% to N40.469 billion from N22.844 billion reported in Q1 2022.

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BUA Foods' impressive performance is the highest since going public in 2021, which helped it retain its title as Nigeria's most profitable food manufacturing company.

How BUA made so much money when other companies didn't

The group’s revenue comes from its seven major business segments, with every single one posting revenue growth quarter on quarter.

This includes the sugar industry, rice milling facility, and edible oil plants, providing it with a platform to keep generating revenues.

During the quarter, its Sugar businesses, which include fortified, non-fortified, and molasses, contributed N93 billion to revenues compared to N54.1 billion in the same period in 2022. Sales from its fortified segment alone doubled to about N61 billion.

Also contributing significantly to topline revenues is its Bakery Flour business, which grew from N18.3 billion to N29.6 billion in the period under review.

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More money for Dangote

In another report, Legit.ng revealed that Africa's richest man is set to walk home with over N293 billion as dividends from his cement company, Dangote Cement.

Aliko Dangote's cement company recorded a revenue jump of 16.96% in 2022 to hit a high of over N1.61 trillion.

Dangote's dividend was more than the budget of 25 states for the fiscal year of 2023.

Source: Legit.ng