BUA Foods Plc, one of the leaders in the Fast-Moving Consumer Goods (FMCG) sector in Nigeria, has grown its market capitalization from 720 billion naira to 5.8 trillion naira within a space of two years.

Engr. Ayodele Abioye, the BUA Foods Managing Director while chatting with journalists on Wednesday at the company’s head office in Victoria Island, Lagos disclosed that the market performance was recorded since the listing of the company on the Nigeria Exchange Group in 2022.

According to the MD, the unprecedented growth recorded in the last two years was hinged on the business resilience and determination to weather the storm despite the economic headwinds that have confronted the company.

“As at today, we have grown the market capitalization from 720 billion naira to 5.8 trillion naira within two years. We started witnessing this unprecedented success in our financial performance since we listed on the Nigeria Exchange Group. Since January 2022, we have excelled in tough economic times and we have democratized wealth creation by delivering value across the capital market ecosystem through boosting liquidity at the stock exchange, generating returns for investors and achieving 100% dividend payout.

“Apart from growing the market capitalization, the shareholders’ count also grew from 324 in 2002 to 2,612. As we look into the future, BUA Foods is positioned to sustain the growth trajectory even as it invested in its backward integration programme aimed at boosting local raw material sourcing.

“At the moment, over $200 million had been invested on the BUA Sugar Estate in Lafiaji, Kwara State with strong partnership with the host community.

Our focus remains on increasing revenue, improving production and expanding our product mix as well as deepening markets,” He said.

Touching on what will drive the company’s success in 2024, the BUA Boss revealed that the key driver would come largely from the large volume of product offering and low pricing which is very critical considering the situation the country is currently facing.

Also speaking on BUA Foods borrowings that recently surged from N211.67 billion to N237.79 billion, the company’s Executive Director and Chief Financial Officer, Abdulrasheed Olayiwola, hinted that most of the borrowings are short-term loans, stressing that the figure was triggered by the Foreign Exchange as most of the businesses use Import Finance Facility, (IFF).

“In the past, you don’t see that because you have your own money you placed in the bank and with just a request, you are there. But in the last two to three years, there has been challenge of FX. So the banks have to go out of their ways to source for FX for you and then, wait for the CBN to fund them. They will also go out of their way to source the money for you. That is why you see those borrowings growing. For a while now, the CBN is clearing forwards, so that number will continue to go down.

“On IPO, we have other programmes we are targeting, we have five divisions and four of those divisions are very active. We still have our oil mill coming up and those are strategic investment for us and we can approach the market today to raise additional fund. And to be able to do that, that will be a major win for us but not for the purpose of importing basic raw materials which you can easily use other facilities to do,” the CFO concluded.