Market capitalisation of BUA Foods Plc, largely owned by Africa’s third richest man, Abdul Samad Rabiu, has soared to N17.4 trillion as of Tuesday, April 28, following an 8.65 percent rise in its share price to N967, making it the most valuable stock on the country’s bourse.
The food manufacturer has now regained its position, effectively ending the more than two months reign of telecom giant MTN Nigeria as the most valuable stock on the Nigerian Exchange.
That rise in share price follows a record planned dividend payout. Subject to approval, BUA Foods is expected to hand shareholders 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.
Read also: BUA Foods doubles dividend to N28 per share as revenue hits N1.77trn
Investors are upbeat on the growth trajectory of the company especially as it continues on a profitability path despite macro economic headwinds.
Net income of the sugar, flour and rice producer nearly doubled to N518.38 billion, according to its audited financial statement
This is as revenue rose to N1.77 trillion, up from N1.53 trillion in 2024, despite pressure on household incomes.
Market watchers also linked the share rise to the planned capacity expansion, a move aimed at capturing the country’s fast-moving consumer goods market, estimated at N23 trillion, while adding hundreds of direct and indirect jobs to the economy.
Read also: BUA Foods eyes 50% capacity expansion, adds more jobs to economy
“We are committed to coming to market with a capacity increase of over 50% across our business divisions,” Ayodele Abioye, managing director of BUA Foods, said on an investors’ call recently.
“These expansions will significantly strengthen our ability to meet market demand while accelerating product innovation for our consumers,”
The expansion initiatives, according to Abioye, are focused and intended to upscale market penetration and increase production capacity, efforts that will aid growth and profitability in the short to medium term.