The company said its
rice milling plant has the capacity to produce 200,000 metric tons yearly. This
commencement of operations of its rice business is in addition to a total of
1.4million tons of flour milling and 500,000 tons of pasta also expected this
year.
“We are partners and
key players in Nigeria’s rice revolution,” the acting Managing Director, BUA
Foods Plc, Ayodele Abioye said on Tuesday at the company’s Facts Behind the
Listing presentation on the Exchange.
BUA Foods Plc which
operate five business divisions and has two wholly-owned subsidiaries recently
listed by introduction on the Main Board of the Nigerian Exchange Limited (NGX)
a total of 18 billion ordinary shares at N40 per share under the Consumer Goods
sector of NGX trades with a symbol BUAFOODS.
The listing of BUA
Foods’ shares had added N720billion to the market capitalisation of NGX,
further boosting liquidity in the Nigerian capital market and providing
opportunities for wealth creation.
Since its listing on
the Nigerian Exchange, BUA Foods Plc has risen most on the Bourse by
54.5percent, as its share price stood at N61.80 at the close of trading on
Monday, January 17.
The “Facts Behind the
Listing” event was an interactive session with capital market stakeholders as
it created a forum for discourse and dissemination of information. Given that
the market is driven by timely, relevant, and accurate information, interactions
such as the Facts Behind the Listing remains critical in the decision-making
for all investors.
This disclosure comes
on the heels of the company showcasing its robust history even as it reposition
for further growth in an attractive sector.
“Nigeria’s favourable
demographic parameters propel ongoing and future growth of its consumer
markets. The question is: how does the company tap into this opportunity? It
will leverage sustainable, efficient and scalable platforms supported by a
well-defined strategy to ensure leading market positions”, Abioye said.
He noted that BUA
Foods Plc is committed to environmental sustainability and providing support
and investment in the host communities. “Completion and operation of additional
capacity is expected to drive growth in revenue from 2022 and beyond,” he
added.
Abdulrasheed Olayiwola, chief financial
officer, BUA Foods Plc who spoke on the company’s historical performance noted
that the consolidated financial statements are reflective of upside potentials.
In eleven-month to November 2021, BUA Foods
Plc revenue grew by 58 percent from N193billion in 2020 to N304billion in
November 2021. “Our revenue growth is simply due to our product market
acceptability,” Olayiwola said.
Also in the review eleven months to
November 2021, BUA Foods Plc gross profit grew from N64.9billion in 2020 to
N96.2billion in 2021; while Pre-tax profit (PBT) rose from N49.6billion in 2020
to N78.8billion in November 2021.
As expected, since its listing, BUA Foods
has increased the visibility of the food manufacturing, processing and
distribution company to investors on the African continent and across the
globe.
In his remark, Olumide Bolumole, Divisional
Head, Listing Business, NGX, who represented Temi Poopola, CEO, NGX during the
Facts Behind the Listing noted, “We recognize the efforts made by the Board and
Management of BUA Foods towards this listing and the roles played by all the
professional parties to this transaction – Stanbic IBTC Capital Limited – the
Lead Financial Adviser, Rand Merchant Bank Nigeria Limited and UCML Capital
Limited- the Joint Financial Advisers, APT Securities Limited and CardinalStone
Securities Limited – the Stockbrokers to the transaction as well as other
transaction parties for their hard work and dedicated efforts towards the
actualization of a successful listing.”
He said, “Listing on the NGX Main Board
requires a commitment to high standards of disclosure and corporate governance,
and companies listed on the exchange benefit from being able to leverage on the
deep pool of local and international investors to access capital.
Following the admission of BUA Foods’
shares on the Main Board of the Exchange on Wednesday, January 5th, 2022, the
company has experienced an upward trend in share price, market capitalization
along with trading activity. This communicates the markets appetite and
investors alignment with the company’s strategic goal and a willingness to
participate in the growth story.
Additionally, as at Friday 14th January,
BUA Foods became the largest company by market capitalization in the consumer
goods sector, increasing the total equity market capitalization by over
4percent.
This listing marks a new beginning for BUA
Foods Plc who plays a critical role in the FMCG industry as the company can
also leverage other Capital Market Products and services the Exchange offers to
achieve their strategic objectives.”
“As part of BUA Group’s strategic thrust to
optimize its processes and to maintain market leadership in consumer goods
sector, The Group deemed the consolidation of its food-related operations into
a single entity “BUA Foods Plc” necessary to take full advantage of the growth
opportunities in the economy.
Furthermore, BUA Foods have also invested
heavily in the backward integration program of the Federal Government under the
supervision of the National Sugar Development Council (NSDC) to ensure its
operations are optimized and to also benefit from the positive growth in the
Agriculture Sector,” the NGX CEO stated further.
“We encourage BUA Foods Plc to continue to
strive for excellence by adhering to the highest standards of disclosure and
corporate governance. The NGX is dedicated to being a trusted partner to BUA
Foods on its journey even as we implore all our issuers to take advantage of
our platform to interact with the market,” NGX CEO added.
In the same vein, the Governor of the
Central Bank of Nigeria, Godwin Emefiele, also disclosed that rice production
in the country rose to nine million metric tonnes in 2021 from about 5.4m MT in
2015.
Emefiele, who disclosed this at the
unveiling of 13 rice pyramids in Abuja by President Muhammadu Buhari attributed
the increase in production to interventions in the agricultural sector by the
Federal Government.
According to him, one of such interventions
is the CBN Anchors Borrower’s Programme which has built a sustainable framework
for financing smallholder farmers in Nigeria.
He added that the programme had also helped
to reduce Nigeria’s import bill from countries like Thailand.
Emefiele said, “The Anchor Borrowers’
Programme has catalysed the rural economy and has built a sustainable framework
for financing smallholder farmers in Nigeria.
“For example, Thailand alone exported 1.3
million metric tons of rice to Nigeria in 2014. The ABP was launched in 2015 to
curtail these imports, and since then, we have seen incremental reductions in
rice imports from Thailand.
“By 2016, rice imports from Thailand had
fallen to only 58,000 metric tons. As of the end of 2021, they only exported 2,160
metric tons to Nigeria, thereby saving us foreign exchange and helping preserve
jobs in Nigeria.
At the event, President Muhammadu Buhari
assured Nigerians to expect better prices for rice in no distant time.
‘I am aware that the bags of paddy will be
moving straight from here to rice milling plants across Nigeria, which will
lead to the release of processed rice to the markets by the rice millers. The
measure will aid our efforts at reducing the price of rice in Nigeria,” he
said.
0 comments:
Post a Comment