BUA Foods pays $364m dividend as 2025 profit doubles
Nigerian food processor BUA Foods distributed a record $364 million to shareholders after doubling its 2025 profit, demonstrating that vertically integrated supply chains can outmaneuver persistent inflation.
BUA Foods Plc paid shareholders a total of N504 billion ($364 million) for the 2025 financial year, with the electronic distribution completed on July 15. The payout cements the Nigerian food manufacturer's status as one of the most lucrative dividend issuers on the Nigerian Exchange. The record distribution was supported by a sharp increase in underlying earnings.
Profit after tax surged to N518.7 billion ($374.6 million), more than doubling from the N266 billion ($192.1 million) recorded a year earlier. This growth was primarily driven by robust consumer demand for staple products like sugar, rice, and pasta. Notably, the company achieved this expansion while navigating Nigeria's persistent inflationary pressures and elevated production costs.
For investors, the results underscore the defensive advantages of vertically integrated consumer staples businesses in emerging markets. BUA Foods successfully shielded its margins through a model spanning sugar refining, flour milling, rice processing, and edible oil production. By maintaining direct control over sourcing and distribution through subsidiaries like BUA Sugar Refinery and IRS Pasta, the company offset macroeconomic headwinds with improved cost management and operational efficiencies.
The dividend allocation heavily favored the company's founding family. Abdul Samad Rabiu, who controls a 92.64 percent equity stake, received approximately N467 billion ($337.3 million). His son, Isyaku Abdulsamad Khalifa Rabiu, collected N13.2 billion ($9.6 million) from his 2.63 percent holding of 473.63 million shares. That stake is currently valued at roughly N444.7 billion ($328 million).
The payout coincides with the younger Rabiu taking on a heightened strategic role within the broader conglomerate. He was appointed chief officer for global procurement and strategic operations in January 2026. In this capacity, he is directly responsible for global sourcing, procurement processes, and supply chain optimization.
His mandate includes strengthening supply chain resilience and driving cost reduction initiatives across BUA Group's various businesses. Prior to this promotion, he worked on operational improvement projects and supplier relationship management. Khalifa Rabiu holds a bachelor’s degree in international relations from Regent’s University London and a master’s in Management from Georgetown University’s McDonough School of Business.
