BUA Foods approves N28 dividend as cost cuts drive profit

BUA Foods shareholders approved a final dividend of N28 and re-elected Chairman Abdul Samad Rabiu at the company’s annual general meeting on July 15. The resolutions, confirmed in a July 17 statement by Company Secretary Oluseye Alayande, also returned independent director Oluyemisi Lowo-Adesola to the board.

“That the re-election of the following directors, Abdul Samad Rabiu and Oluyemisi Lowo-Adesola retiring by rotation be and is hereby approved,” the resolution stated. The board now includes Managing Director Ayodele M. Abioye and non-executive directors Kabiru Rabiu, Chimaobi Madukwe, Finn Arnoldsen, and Imran Rashid.

For investors, the AGM rubber-stamps a corporate strategy that is yielding higher margins in a challenging Nigerian operating environment. The company posted a profit before tax of N153.76 billion in the first quarter of 2026. This represents a 12.74% increase from the N136.39 billion recorded in the same period of 2025.

That bottom-line growth is particularly notable because it occurred alongside an 11% year-on-year decline in revenue, which fell to N394.62 billion. BUA Foods achieved the profit expansion entirely by slashing operating and finance costs.

The earnings resilience is further highlighted by the absence of foreign exchange gains in the first quarter of 2026. In the corresponding period of 2025, the company recorded N486 million in FX gains. Generating stronger profits without this financial tailwind suggests a structural improvement in operational efficiency rather than a reliance on macroeconomic volatility.

Shareholders also elected three representatives to the Statutory Audit Committee: Musa Bichi, Eric Akinduro Akinnifesi, and Nwokocha Innocent Peters. They will join board representatives Lowo-Adesola and Madukwe. The AGM additionally approved management remuneration for the 2026 financial year and the audited financial statements for the year ended December 31, 2025.