.Begins operations at 200,000mt rice milling plant
The management of BUA Foods Plc. was on Tuesday, January 18, 2022 hosted to a closing gong ceremony on the main floor of the Nigerian Exchange (NGX) Limited. This was after addressing market stakeholders with a fact behind the listing presentation in a webinar held earlier in the day.
The Acting Managing Director, BUA Foods, Engr. Ayodele Abioye, said plans are underway to begin operations at 200,000 metric tonnes rice milling plant as part of its diversification operations in 2022.
According to him , “our fast paced and strategic investments in the food industry positions us to capture growth opportunities within the sector, create headroom ahead of demand, generate sustainable employment while promoting national food security.
Additionally, as a business we will continue to create sustainable value for our consumers and stakeholders”.
Abioye said that BUA Foods was a key player in Nigeria’s rice revolution and its rice business was in addition to its 500,000 tons of flour milling and 250,000 tons of pasta.
According to him, the 250,000 tons per annum edible oils milling plant will recommence operations in 2024.
“BUA Foods is future-focused and a resilient business built on strong brands and high-quality products.“It is uniquely positioned to capture increasing sector growth opportunities with innovative expansion capabilities and present an attractive financial profile which ensures a return on investment.
“As a business, we will continue to leverage and structure our strategic partnerships on our journey. Also, we rely on good governance and experiences of our people to deliver sustainable results.
“For over two decades, we have been on the journey of fulfilling human food demands, promoting food security, and nourishing lives,” he said.
Abioye said that the sugar market specifically, was undeserved.
He said it had given room for informal activities to thrive, contributing about 300,000 metric tonnes into the market through informal or unregistered means.
On the requirements of free float, Abioye said it was a regulatory requirement and the company was working to meet up within the next 24 months as part of its corporate governance committee.
He said the company was committed to environmental sustainability in its host communities.
Abioye said that its growth drivers were the completion and operation of additional capacity that would grow its revenue base.
BUA Foods was listed on the Nigerian Exchange on Jan 5, 2022 and has since received significant acceptance going by the volume of demand for the shares which has boosted the market capitalization of the Nigerian Exchange Limited by over N1trillion.
The company has maintained an unbroken record of year-on-year growth and has eight ultra-modern manufacturing facilities across the country. BUA Foods currently has a refining capacity of 1.5 million metric tonnes of sugar yearly from two ultra-modern sugar refineries in Lagos and Port Harcourt. As part of its expansion strategy in 2022, BUA Foods plans to double its flour milling capacity from about 500,000 metric tonnes per annum to over a million metric tonnes per annum. Similarly, that of pasta will grow from 5 lines to 11 lines.
The company’s rice mill, one of the largest in the country, has a capacity to produce 200,000 tonnes of rice per annum with work currently in progress on a rice plantation that will change the face of rice production in Nigeria.
Kabiru Rabiu, Group Executive Director speaking on behalf of the Chairman of BUA Foods Plc. stated that the company is determined to explore the huge opportunities available in the agribusiness to promote food security and growth for Nigerians and Africans.
According to Rabiu, “Today for us is very historic and we are excited to begin the year with the listing. The population of Nigeria is over 200million and our food production capacity is still not enough to meet current demands. However, with the listing of our food business on the NGX, there is high hope for Nigeria in terms of building capacity for food sufficiency.”
“As a country we have agricultural resources coupled with human capital to harness needed raw materials to produce what we need for our consumption, and develop our nation. We are positioning our brand to take advantage of export opportunities through our strategically located plants from which foreign exchange can be generated both for the company and economy”, Rabiu added.
Also Rabiu, said the decision to list BUA Foods on the exchange, reaffirmed the company’s long-term commitment to the contributions of the national economic growth plans.
Rabiu said: “Our listing on the exchange undoubtedly creates a new consumer goods asset class for investors and provides an opportunity for a wider group of Nigerians to be part of the food sector growth story.
“Our strong drive is key strategy to continuously and competitively meet demands.“We understand that the demand for healthy and quality foods products will continue to increase as we grow our economy.”
On his part, the Chief Executive Officer, NGX, Mr. Temi Popoola, stated, “This listing marks a new beginning for BUA Foods Plc who plays a critical role in the FMCG industry as the company can leverage services the Exchange offers to achieve its strategic objectives. BUA Foods has experienced an upward trend in share price, market capitalization, and trading activity since its listing on the Exchange. At NGX, this milestone transaction is in line with our strategic objectives to improve listings and enhance investors’ participation in our market. As a multi-asset Exchange, NGX is strategically positioned to be the preferred listing and investment destination connecting Nigeria, Africa, and the world. I must, therefore, encourage capital market players and enthusiasts at home and abroad to pay closer attention to the plethora of opportunities available in our market both to list securities and make the most of their investments. NGX will continue to provide innovative solutions that meet the ever-evolving needs of our stakeholders.”
In his comments, Mr. Abdulrasheed Olayiwola, the Chief Financial Officer, BUA Foods, while presenting the company’s financial statements, said though the financials were still being audited, the unaudited results showed positive revenue, PBT, and PAT growths.
Mr. Olumide Bolumole, the Divisional Head, Business Listings, NGX, said the listing on the NGX mainboard requires a commitment to high standards of disclosure and corporate governance.
Bolumole said that the companies listed on Nigeria’s bourse benefit from being able to leverage the deep pool of capital to local and international investors to access capital.
“Following the admission of BUA Foods on the main board of the NGX on Jan. 5, the company has experienced an upward trend in share price and market capitalisation along with the trading activity.
“This communicates the market appetite and investors’ alignment with the company’s strategic goal and willingness to participate in the whole story,” he said.
Bolumole commended all the parties in the transaction for their dedicated efforts toward the successful listing.
BUA Foods is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. With strategically located plants across Nigeria, coupled with a cordial alliance with local stakeholders in host communities, BUA Foods is a resilient business built on a strong brand proposition and is an operator with reputation for delivering high-quality products.
BUA Foods continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain. The company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.
Headquartered and listed in Nigeria, BUA Foods has become one of the most capitalized companies on the NGX and a leading consumer goods firm by market value.
