Billionaire businessman, Abdul Samad Rabiu’s two companies, BUA Cement and BUA Foods, recorded a net capital gain of N2.3 trillion in 2023.
This is said to be the highest capital gain ever recorded by a billionaire with a controlling interest in companies listed on NGX.
The net gains represent a 194% increase year on year in terms of market valuation for shareholders of the company, especially Samad Rabiu who controls the majority of shares of the companies.
According to reports, the billionaire’s wealth was reduced by $2.5 billion in 2023 largely due to naira devaluation.
However, his investment in these companies resulted in more than a doubled return due to capital appreciation.
Last year was a landmark year for the Nigerian Exchange (NGX), as the market saw a significant appreciation of 45.90%. This marked the fourth consecutive annual gain, with the All-Share Index (ASI) closing at 74,773.77. Additionally, the market capitalization increased by N13 trillion year-on-year, reaching a total of N40.92 trillion.
BUA Foods, which is a flagship brand in Rabiu’s portfolio, has emerged as the leader in consumer goods market capitalization. The company has experienced a phenomenal 206% year-to-date appreciation, with share prices soaring from N65/share in December 2022 to the current value of N193.40/share, reflecting a gain of 194.54%.
In terms of fundamentals, BUA Foods exhibited robust financials, with a 54% increase in profits to N105.6 billion in the first 9 months of 2023. Revenue witnessed an impressive 80.95% YoY growth, reaching N524.428 billion, and return on average equity stood at 43.42%.
In contrast, BUA Cement reported a slight dip in its year-to-date value, with a decline of 0.74%, closing the year at N3.28 billion in market valuation. Earnings per share dropped to 225 kobo, significantly lower than the 298 kobo reported in full-year 2022.
Rabiu’s primary performance indicator remains BUA Foods, which demonstrated an astounding growth in market capitalization of 197.6%, highlighting its resilience and strategic positioning in the market.
Rabiu’s businesses have encountered several challenges, including the devaluation of the naira and rising operational costs.
However, BUA Foods showcased resilience, finishing strong in 2023. This performance signals potential dividend payments, rewarding steadfast shareholders.
Despite facing challenges, Rabiu strategically increased his direct shares in BUA Cement by 56.37%, totaling 96.12% ownership valued at N3.22 trillion. This move, executed on June 26th, 2023, demonstrates Rabiu’s confidence in the future growth of his company.
In 2022, BUA Foods listed its five food businesses, including pasta, edible oil, sugar, rice, and flour on the Nigerian Exchange Limited by introduction at N40.00 per share.
The company listed 18 billion shares with a market capitalization of N720 billion.
