The BUA Foods Plc N13 per share proposed dividend has been approved by shareholders.
It represents a 136 per cent increase from the N5.50 paid in 2023.
The approval was given at its 4th Annual General Meeting on Thursday, September 11, in Abuja.
In a statement by its Director of Marketing and Corporate Communications, Adewunmi Desalu, BUA Foods noted its profit after tax rose to N265.9 billion for the 2024 financial year, marking a 137 per cent growth from N112 billion in 2023.
“BUA Foods Plc, a frontrunner in Nigeria’s Food manufacturing Industry and the most capitalised Business on the Nigerian Exchange Limited, held its 4th Annual General Meeting in Abuja at the Transcorp Hilton Hotel.
“At the meeting, shareholders approved a dividend of N13 per share, representing a 136 per cent increase from N5.50 paid in the previous year,” it stated.
Highlighting the company’s progress in tackling food supply challenges and advancing food security, the Chairman, Abdul-Samad Rabiu, said, “We remained steadfast in our operations and achieved notable progress on key strategic initiatives geared towards addressing food supply challenges and promoting food security.”
On his part, the Managing Director, Ayodele Abioye, attributed the company’s growth to strategic investments in production systems, market penetration, and product diversification.
He said the efforts had been key to the company’s resilience amid a volatile economic environment.
Shareholders hail BUA Foods’ performance
The President of the New Dimension Shareholders Association, Patrick Ajudua, lauded the company’s consistent value delivery to shareholders and encouraged other investors to consider adding BUA Foods shares to their portfolios.
Also, President of the Association of the Advancement of the Rights of Nigerian Shareholders, Faruk Umar, noted BUA Foods’ remarkable growth, citing the company’s N1.5 trillion revenue as an outstanding achievement.
Despite improved financial performance, cash flow, capex decreased
BUA Foods’ revenue rose to N1.53 trillion in 2024 from N729.4 billion in 2023, and earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to N481.7 billion from N215.7 billion.
This brought its EBITDA margin to rise to 31.5 per cent from 29.6 per cent while its earnings per share improved to N14.78 from N6.23 in 2023.
While BUA Foods grew its total assets to N1.09 trillion from N1.07 trillion, its net debt stood at N360.5 billion, down from N551.5 billion.
The food manufacturing giant allocated N31.6 billion for capital expenditure (capex), a decrease from the N37.1 billion spent in 2023, while free cash flow also decreased to N31.3 billion from N99.6 billion.
At the AGM, all resolutions presented to shareholders were approved, including the re-election of directors and the approval of remuneration policies.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
