BUA Foods Plc has confirmed plans to begin operations at 200,000 metric tonnes rice milling plant as part of its diversification operations in 2022.
The Acting Managing Director, BUA Foods, Ayodele Abioye, said on Tuesday at the Facts Behind the Listing Presentation webinar in Lagos that BUA Foods was a key player in the Nigeria’s rice revolution and its rice business was in addition to its 500,000 tons of flour milling and 250,000 tons of pasta.
The Facts Behind the Listing Presentation was hosted by the Nigerian Exchange, NGX, Limited.
The presentation was to commemorate the listing by introduction of BUA Foods on the Main Board of the NGX on Jan. 5, with a total of 18 billion ordinary shares at N40 per share under the Consumer Goods sector, going by the symbol of BUAFOODS on NGX trades.
Abioye said that the 250,000 tons per annum edible oils milling plant will recommence operations in 2024.
He said, “BUA Foods is future-focussed and a resilient business built on strong brands and high quality product.
“It is uniquely positioned to capture increasing sector growth opportunities with innovative expansion capabilities and present an attractive financial profile which ensures a return on investment.
“As a business, we will continue to leverage and structure our strategic partnerships on our journey. Also, we rely on good governance and experiences of our people to deliver sustainable results. For over two decades, we have been on the journey of fulfilling human food demands, promoting food security and nourishing lives,” he said.
He added that the sugar market specifically, was undeserved which according to him has given room for informal activities to thrive, contributing about 300,000 metric tonnes into the market through informal or unregistered means.
On the requirements of free float, Abioye said it was a regulatory requirement and the company was working to meet up within the next 24 months as part of its corporate governance commitment.
He said the company was committed to environmental sustainability in its host communities.
Abioye said that its growth drivers were the completion and operation of additional capacity that would grow its revenue base.
Also, the Executive Director, BUA Foods, Kabiru Rabiu, said the decision to list BUA Foods on the exchange, reaffirmed the company’s long-term commitment to the contributions of the national economic growth plans.
Rabiu said: “Our listing on the exchange undoubtedly creates a new consumer goods asset class for investors and provides an opportunity for a wider group of Nigerians to be part of the food sector growth story.
“Our strong drive is key strategy to continuously and competitively meet demands. We understand that the demand for healthy and quality foods products will continue to increase as we grow our economy.”
In his comments, the Chief Financial Officer, BUA Foods, Abdulrasheed Olayiwola while presenting the company’s financial statements, said though the financials were still being audited, the unaudited results showed positive revenue, PBT and PAT growths.
The Divisional Head, Business Listings, NGX, Olumide Bolumole said the listing on the NGX main board requires a commitment to high standards of disclosure and corporate governance.
Bolumole said that the companies listed on the Nigeria’s bourse benefit from being able to leverage on the deep pool of capital to local and international investors to access capital.
“Following the admission of BUA Foods on the main board of the NGX on Jan. 5, the company has experienced an upward trend in share price and market capitalisation along with trading activity.
“This communicates the market appetite and investors alignment with the company’s strategic goal and willingness to participate in the whole story,” he said.
Bolumole commended all the parties in the transaction for their dedicated efforts toward the successful listing.