BUA Foods Plc has announced for approval a N28 dividend per ordinary share of 50 kobo, amounting to N504 billion, after the food manufacturer hits record profit in 2025.
This marks the continuity of the consumer goods dividend policy that it has maintained for the past four years, despite economic headwinds that have held many firms from paying dividends to their shareholders.
This comes as the Lagos-headquartered company controlled by Africa’s third richest man, Abdul Samad Rabiu, almost doubled its net income to N518.38 billion, according to its audited financial statement filed on the Nigerian Exchange on Monday.
Revenue rose to N1.77 trillion, up from N1.53 trillion in 2024, driven by higher volumes and pricing across sugar, flour, pasta, and rice — staples that have remained resilient despite pressure on household incomes.
Read also: How Abdul Samad Rabiu rose to Africa’s fourth richest on back of BUA Foods earnings
Gross profit surged to N737.3 billion, a notable jump from N540.8 billion a year earlier, supported by scale advantages and sustained demand for essential food items. This is as operating profit rose sharply to N656.6 billion, compared with N472.1 billion in the prior year.
Earnings per share (EPS) for the year stood at N28.80, significantly higher than the previous year’s N14.78, underscoring improved profitability and operational efficiency.
“Our 2025 performance reflects the strength of our growth strategy and our ability to consistently scale revenue in a dynamic operating environment. The significant increase in our proposed dividend to N28 per share underscores our commitment to delivering enhanced value to our shareholders while continuing to invest in the future of the business,” said Abdul Samad Rabiu, the chairman of the company in a statement.
Also commenting, Ayodele Musibau Abioye, BUA Foods managing director, added: “Our focus remains on driving sustainable revenue growth through capacity expansion, market penetration, and improved end-to-end supply chain. The strong demand across our product categories reinforces our strategic direction, and we are well-positioned to build on this momentum.”
Read also: BUA Foods names Khalifa Rabiu to executive role as growth push deepens
Cost pressures, however, remained elevated, with selling and distribution expenses rising to N44.2 billion and administrative costs to N37.8 billion, but these increases were outweighed by revenue growth and lower financing drag.
The company’s core segments — sugar, bakery flour and pasta — continued to anchor performance, together accounting for more than two-thirds of turnover. Sugar sales alone exceeded N750 billion, benefiting from domestic refining capacity at a time when import substitution remains a policy priority.
Cash generation, however, slowed despite a rise in earnings. Operating cash flow dropped to N406.1 billion. It nevertheless enabled BUA Foods to fund working capital needs, service debt, and pay N234 billion in dividends without materially increasing leverage.
Total assets expanded to N1.39 trillion, while shareholders’ equity rose to N713.4 billion, reinforcing balance-sheet resilience.
Read also: BUA Foods to more than double dividend payout in 2025, analysts say
The performance stands out in a consumer sector still grappling with inflation, though easing, high energy costs, and fragile demand.
While discretionary spending remains weak, staple food producers have benefited from population growth and limited substitutes, insulating volumes even as prices rise.
With a market capitalisation of N14.4 trillion, BUA Foods remains the second most valuable company on the Nigerian Exchange. It closed its last trading day on Monday, March 30, 2026, at N798.00 per share.
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