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BUA Foods; The New Kid on the Block

Jan 06, 2022   •   by   •   Source: Proshare   •   eye-icon 711 views

Thursday, January06, 2022 / 10:40 AM / by CSL Research / Header Image Credit: The Fast Observer


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On Tuesday, BUA Group listed a consolidated entityknown as BUA Foods, a combination of its five food businesses comprising pasta,edible oil, sugar, rice, and flour on the Nigerian Exchange Limited byintroduction at N40.00/s. The total shares admitted to trading were 18.0bnunits of shares, with a market capitalization of N720.0bn upon listing. Thismarks the first listing on the NGX in 2022. Given the great enthusiasm thattrailed the stock listing, it closed at N44.0/s (8th most capitalized stock onthe exchange). BUA Foods has a 1.5million MTPA Combined Sugar ProductionCapacity, eight ultramodern factories for producing rice, sugar, pasta, flourand 20,000 hectares of arable land located in Lafiagi, Kwara State.

 

Sugar Refining

The Group currently has 2 ultra-modern and automatedsugar refineries (BUA Sugar Refinery, Lagos and Eastern Sugar Refinery, PortHarcourt) with a combined installed refining capacity of 1,500,000 metrictonnes. BUA is the only sugar refiner to have refining capabilities outsideLagos, Nigeria. In response to Nigeria's backward integration policy in theSugar Industry, BUA Group acquired the Lafiagi Sugar Company (LASUCO) in Kwarastate in 2008 and established the Bassa Sugar Company in Kogi State. The Groupalso has c.70,000ha of land in both locations to set up large-scale sugarplantations to aid the development of Nigeria's local sugar industry. Itsclosest competitor is Dangote Sugar.


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Flour Milling

Flour is a Nigerian staple. Flour Mills of Nigeria Plcis one of the largest flour milling companies in Nigeria with an installedflour milling capacity of approximately 9,310 metric tonnes per day at itsApapa milling site in Lagos. The company recently announced plans to acquireHoneywell Flourmills. BUA IRS Flour has established a state-of-the-art plant inPort Harcourt, Nigeria, to cater to the growing needs of its population. Theplant currently has 576,000 tons of flour milling capacity. Its closest competitorsare Flour Mills of Nigeria, Honeywell Flour Mills, and Olam.

 

Oil Milling

In 2001, BUA Group acquired Nigeria Oil Mills, an oilmilling company in Kano, established in 1951. This is in addition to its BUAOil Mills in Lagos, which was established in 2008, are the two major companiesfrom which the group produces edible oil ranging from groundnut to cotton seedsoil. The company also produces animal feeds and soap. BUA Oil Mills makeshigh-quality products including palm olein, stearin, Distilled Fatty Acid (DFA)amongst others.

 

Rice Milling andPlantation

Rice is a staple food in Nigeria, and domestic demandstill exceeds supply despite government efforts at boosting supply. BUA Groupcurrently operates a mill in Kano and a rice plantation in Kano, Nigeria. TheGroup also operates an out-growers Scheme targeting about 100,000 rice farmersin Kano and Jigawa State, Nigeria. The mill is the largest in Nigeria at200,000 tonnes per annum and is currently being upgraded to 1million metrictonnes per annum. BUA Rice plantation is estimated to cover a landmass of about10,000hectares. Olam Rice, and Royal Stallion are the competitors for the Ricebusiness


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Related News

  1. BUA Foods Plc Receives Approval to List on the NGX
  2. BUA Group Consolidates Food Businesses, Unveils BUA Foods
  3. BUA Cement Plc Reports N65.9bn PAT in Q3 2021 Results,(SP:N72.00k)
  4. BUA Cement Plc Reports N43bn PAT in Q2 2021 Results, (Share Price: N67.30k)
  5. Backward Integration: CBN Clears Dangote, BUA on Sugar Importation into Nigeria
  6. BUA Cement Chairman, Abdul Samad Rabiu, Gifts N2bn Share Bonus to Employees
  7. FMDQ Exchange Welcomes BUA Cement Plc's N115.00bn Series 1 Bond in the Nigerian DCM
  8. NSE Lists BUA Cement Plc Series 1 Bonds
  9. BUA Founder, Abdul Samad Rabiu Donates N200m to Sokoto State University

 

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