NIGERIA – BUA Foods Plc, one of Nigeria’s foremost food manufacturing companies, has entered into a strategic partnership with IMAS, a renowned Turkish flour milling equipment manufacturer, to construct four advanced wheat and flour milling factories.
This significant development is set to enhance BUA Foods’ production capacity by an additional 3,200 tonnes per day, marking a pivotal step in the company’s expansion strategy.
BUA Foods Plc, listed as one of the most capitalized companies on the NGX Exchange, is recognized for its diversified operations spanning sugar, flour, pasta, rice, and edible oils.
The company’s strategic expansion is built on a foundation of innovation and collaboration with key partners across the value chain, reinforcing its reputation as a leading producer of high-quality consumer goods in Nigeria.
The agreement, which aligns with BUA Foods’ broader growth ambitions following its listing on the Nigerian Exchange (NGX), was formalized during a high-profile ceremony attended by top executives from both companies.
The new mills are expected to significantly boost the company’s ability to produce high-quality flour products, thereby addressing some of Nigeria’s pressing food security challenges.
Abdul Samad Rabiu, Chairman of BUA Foods Plc, expressed his enthusiasm for the partnership.
“This collaboration with IMAS underscores our commitment to improving food security in Nigeria. These new factories will greatly enhance our capacity to continue delivering high-quality flour products while also creating much-needed jobs across the country,” he stated.
Rabiu further highlighted that this investment will play a crucial role in increasing BUA Foods’ market share within Nigeria’s competitive flour industry.
“The addition of these four mills will not only expand our production capabilities but also provide us with the flexibility to meet the diverse needs of the flour market,” he added.
IMAS Vice President Mustafa Ozdemir also commented on the partnership, expressing the company’s dedication to supporting BUA Foods’ expansion.
“We at IMAS are pleased to contribute to BUA Foods’ efforts in ensuring that more people across Africa have access to affordable and nutritious food,” said Ozdemir.
This development comes on the heels of a robust financial performance by BUA Foods in the first half of 2024. The company reported a 110% increase in revenue, reaching ₦672.3 billion (US$874 million), driven by strong performances in its sugar, flour, and pasta divisions.
Despite rising production costs, which increased to ₦453.9 billion (US$590 million), BUA Foods managed to grow its profit after tax by 38% to ₦130 billion (US$169 million).
BUA Foods has also been active in expanding its product portfolio. Earlier this year, the company launched new products, including macaroni, premium pasta, and semolina, further solidifying its presence in the Nigerian market.
The company’s stock has seen significant appreciation, with its shares increasing by 96.43% year-to-date, reflecting investor confidence in its growth strategy.
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