BUA Foods Approves Record $363 Million Dividend Payout

Record Dividend Approved at AGM

BUA Foods, the Nigerian food manufacturing company chaired by billionaire Abdulsamad Rabiu, has approved a record dividend payout of $363 million (N504 billion) at its fifth annual general meeting. Shareholders endorsed a dividend of N28 per share, representing a 115% increase from the previous year's payout. The record date for the dividend has been set, with payment expected to follow shortly.

Strong Financial Performance Drives Payout

The dividend increase follows a 95% rise in profit after tax for the fiscal year 2025. Total revenue grew by 16% to N1.77 trillion, driven by strong demand for staple food products despite challenging economic conditions in Nigeria. The company's robust cash flow and earnings growth enabled the board to propose the enhanced dividend, which was unanimously approved by shareholders.

Majority Shareholder to Receive Bulk of Payout

Abdulsamad Rabiu, Africa's third-richest billionaire, owns approximately 90% of BUA Foods. Consequently, he will personally receive roughly $323 million from the dividend payout. The company's dividend history shows a consistent trend of increasing payouts, reflecting its commitment to returning value to shareholders.

What it means for income investors

The record dividend underscores BUA Foods' strong earnings growth and cash generation capability. For income-focused investors, the 115% dividend increase signals management's confidence in future profitability, though the concentrated ownership structure means the payout is heavily skewed toward the majority shareholder.

Reporting based on: Business Insider Africa. Figures verified against market data where available.