BUA Foods Declares Final Dividend of N13.00 Per Share for Registered Shareholders

Lagos, April 2, 2025 – BUA Foods Plc, one of Nigeria’s leading food manufacturing conglomerates, has announced a final dividend of N13.00 per ordinary share of 50 kobo each for the financial year ending December 31, 2024. The declaration, detailed in a corporate filing with the Nigerian Exchange Limited (NGX) on Tuesday, underscores the company’s robust performance and commitment to rewarding its shareholders amid a challenging economic landscape.

A Substantial Payout

The N13.00 per share dividend, subject to appropriate withholding tax and shareholder approval at the upcoming Annual General Meeting (AGM), translates to a total payout of N234 billion for the company’s 18 billion outstanding shares. Shareholders registered as of the close of business on August 21, 2025, will be eligible, with payments set to be distributed electronically on September 25, 2025. The register of members will be closed from August 22 to August 29, 2025, to facilitate the process.

This payout follows a year of remarkable growth for BUA Foods, which reported audited revenue of N1.5 trillion in 2024—more than doubling the N729.4 billion recorded in 2023. Profit before tax surged to N630.8 billion from N251 billion, driven by strong sales across its sugar, flour, pasta, rice, and edible oils segments. The dividend reflects a payout ratio of 37.22%, balancing shareholder returns with reinvestment for future growth.

Bolstering Investor Confidence

The announcement comes as BUA Foods’ stock has soared 114.58% year-to-date on the NGX, climbing from N193.40 to N415.00, making it one of 2024’s top performers. With a price-to-earnings (P/E) ratio of 28.29x—below the industry average of 36.92x—the stock remains attractively valued, analysts say. Posts on X from users like @TecheconomyNG and @ArbiterzNigeria hailed the move as a “reward for shareholders” and a sign of “solid financial standing,” amplifying optimism around the company.

“BUA Foods’ decision to pay N13 per share reflects its resilience and strategic focus on value creation, even as Nigeria grapples with inflation and currency pressures,” said Tunde Adebayo, a financial analyst at Meristem Securities. The company’s operating profit margin rose to 30.87% from 28.24% in 2023, signaling improved efficiency despite rising input costs.

AGM and Shareholder Engagement

BUA Foods also confirmed its AGM will take place on September 25, 2025, at the Transcorp Hilton Hotel in Abuja, coinciding with the dividend payment date. Shareholders are encouraged to complete e-dividend registration to ensure seamless receipt of funds, with Africa Prudential Plc serving as the registrar. Those with unclaimed dividends or share certificates were urged to contact the registrar or finalize electronic mandates via its website.

The dividend declaration aligns with BUA Foods’ broader narrative of growth since its NGX listing in 2022. Total assets swelled to N1.2 trillion by December 2024, up from N672 billion, while shareholders’ funds grew modestly, reflecting a cautious yet expansionary approach. Chairman Abdul Samad Rabiu, in a prior statement, credited the company’s diversified portfolio and operational scale for navigating Nigeria’s economic headwinds.

A Market Standout

Unlike peers offering bonus shares, BUA Foods opted solely for a cash dividend—a move some on X noted as a deliberate choice to boost liquidity for investors. The N234 billion payout dwarfs BUA Cement’s N69.5 billion final dividend of N2.05 per share announced in March, highlighting the food arm’s outsized contribution to the BUA Group’s shareholder value.

As Nigeria’s economic challenges persist, with inflation hovering above 30% and the naira weakening, BUA Foods’ hefty dividend offers a lifeline to investors seeking returns. With its AGM looming, all eyes are on how the company will sustain this momentum into 2026—potentially cementing its status as a market darling in a volatile landscape.