Ayodele: BUA Foods Combines Grit, Resilience to Drive Value Towards Sustainable Growth
The Managing Director of BUA Foods Plc, Dr Abioye Musibau Ayodele has stated that despite the challenging operating environment, the company combined grit and resilience to drive value towards sustainable growth and market leadership.
While reflecting on the company’s massive performance in 2023, he said the management will continue to do what is possible to enhance shareholders value.
In a chat with select journalists in Lagos, he said food security is the most important mission at the heart of BUA Foods’ existence.
According to him, “It shapes the Company’s strategic direction and operational ethos towards fulfilling Africa’s food demands and improving the well-being of individuals and communities. This steadfast commitment to food security has distinguished BUA Foods and positioned it as an important player in Nigeria’s dynamic food sector and beyond. The Company has achieved a record market capitalization of over N5 trillion post-consolidation and listing on the Nigerian Exchange (NGX).
“Driven by a strategic vision to fortify its presence in the agribusiness and food processing sector, BUA Foods strategically consolidated its diverse food businesses into a unified entity and listed by introduction on the Nigerian Exchange (NGX) two years ago. This strategic decision not only streamlined operations but also bolstered the company’s capacity to capitalise on the growth opportunities and export potential presented by the African Continental Free Trade Area. By consolidating its business divisions, including Rice, Pasta, Flour, Edible Oils, and Sugar, alongside two wholly owned subsidiaries, BUA Foods plays a pivotal role in driving economic growth, producing high-quality foods and creating long-term value for all stakeholders.”
Having made crucial investments to expand and solidify its presence acrossthe-board, Ayodele said the company’s unique business model and operational mechanism is geared towards optimizing capacity utilisation to achieve sustainable financial success.
He added that the five business divisions of BUA Foods have demonstrated remarkable growth.
“Notably, the Flour business witnessed a substantial expansion in production capacity, increasing from 500,000 Metric Tonnes (MT) to 1,220,000 MT. At the same time, the Pasta division saw its capacity rise from 250,000 MT to 500,000 MT between 2021 and 2023. These growths translated into revenue increases, with Flour recording a remarkable 152% surge and Pasta achieving a notable 54% growth in 2023 relative to previous year.
“Additionally, BUA Foods embarked on developing its rice business during this period, with initial production capacity of 200,000 MT leveraging its commitment to utilising locally sourced raw materials. This strategic approach not only supports national development plans but also fosters the advancement of Nigeria’s local rice industry, ultimately enhancing the economic prospects of local communities.
“Despite maintaining a consistent production capacity of 1,500,000 MT since 2021, the Sugar business remains one of the largest sugar refineries in West Africa and achieved an impressive 53% growth in revenue, underscoring its significance within the region’s sugar industry landscape, “he said.
BUA Foods, he stated, remains dedicated to its sustainability initiatives, actively engaging with host communities and prioritising responsible production practices to minimise its environmental footprint. “From reducing water consumption to improving air quality and mitigating noise pollution, BUA Foods continues to demonstrate its commitment to environmental stewardship while fostering positive relationships within its communities, “he added.