Nigeria’s billionaire investor, Abdul Samad Rabiu saw his two flagship companies BUA Cement and BUA Foods post a net capital gain of N2.3 trillion in 2023.
This is by far the highest capital gain of any billionaire with a controlling interest in companies listed on the 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.
However, based on capital appreciation, his wealth invested in these companies more than doubled.
This contributed to the landmark year for the Nigerian Exchange (NGX), where market appreciation hit 45.90% marking its fourth consecutive annual gain closing with an All-Share Index (ASI) of 74,773.77, and market capitalization increasing by N13 trillion year-on-year, to reach N40.92 trillion
How the companies performed
BUA Foods, a flagship in Rabiu’s portfolio, emerged as the consumer goods leader in market capitalization, experiencing a phenomenal 206% year-to-date appreciation. Share prices soared from N65/share in December 2022 to the current value of N193.40/share, reflecting a 194.54% gain.
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 biggest performance indicator remains BUA Foods, which demonstrated a staggering 197.6% market cap growth, emphasizing its resilience and strategic positioning in the market.
Rabiu’s businesses faced challenges such as naira devaluation and increased operational costs.
However, BUA Foods showcased resilience, finishing strong in 2023. This performance signals potential dividend payments, rewarding steadfast shareholders.
Despite challenges, Rabiu strategically increased his direct shares in BUA Cement by 56.37%, totalling 96.12% ownership valued at N3.22 trillion. This move, executed on June 26th, 2023, demonstrates Rabiu’s confidence in his company’s future growth.
Recall, that in 2022, BUA Foods, a combination of its five food businesses comprising pasta, edible oil, sugar, rice, and flour was listed on the Nigerian Exchange Limited by introduction at N40.00/s.
The total shares admitted to trading were 18 billion units of shares, with a market capitalization of N720 billion upon listing.
