Nigerian conglomerate BUA Foods is poised to significantly increase its dividend payout for 2025, with analysts forecasting a more than doubling of distributions to shareholders. This optimistic outlook, primarily from Lagos-based research firm CardinalStone, stems from the company’s robust profit growth and strengthening cash flow. As Nigeria’s most valuable listed entity, BUA Foods continues to demonstrate a strong commitment to shareholder returns amidst challenging economic conditions, maintaining a consistent dividend policy over the past four years.
CardinalStone’s recent report details specific projections, anticipating a Dividend Per Share (DPS) of N27.09 for the full fiscal year 2025, followed by N33.56 for fiscal year 2026. These figures represent a substantial leap from the N13 per share declared in 2024 and N5.50 in 2023. The firm attributes this sustained growth to exceptional profit-after-tax expansion, solid operating cash-flow generation, and a high dividend payout ratio consistently maintained at approximately 88.0%.
The company’s impressive financial trajectory is underscored by an average Earnings Per Share (EPS) growth of 80 percent across 2023 and 2024. This strong performance has not only fueled dividend increases but also propelled BUA Foods to become the most capitalized firm on the Nigerian Exchange. Its market valuation soared by 77 percent, from N7.52 trillion at the start of the year to a current N13.2 trillion, surpassing industry titans like MTN Nigeria and Dangote Cement.
This remarkable surge in market capitalization reflects both the company’s fundamental strength and burgeoning investor confidence. BUA Foods’ net profit more than doubled to N405.3 billion in the nine months leading up to September 2025, signalling a period of unprecedented financial health. The company’s managing director, Ayodele Abioye, conveyed to investors in November that this profitability run is expected to persist through the end of the year, driven by strategic expansion efforts.
Analysts at CardinalStone further corroborate this positive outlook, projecting BUA Foods’ full-year net profit to reach N554.13 billion. This forecast is significantly bolstered by an improving macroeconomic environment, including a stabilizing naira and a sustained deceleration in inflation. Nigeria’s inflation rate has now slowed for eight consecutive months, reaching 14.45 percent in November, creating a more favourable operational landscape for consumer goods companies.
Revenue projections are equally optimistic, with forecasts indicating a surge to N1.9 trillion for the current fiscal year, up from N1.8 trillion recorded last year. This increase is primarily a result of strategic price adjustments and a significant rise in sales volumes across BUA Foods’ diverse product lines. The company’s ability to navigate market dynamics and capitalize on consumer demand remains a key driver of its financial success.
Looking ahead to fiscal year 2026, CardinalStone anticipates a continued robust revenue uptick, projecting an increase of 20.8% year-over-year to N2.3 trillion. This sustained growth is expected to be reinforced by further improvements in macroeconomic conditions, which are crucial for enhancing consumer purchasing power. Such an environment is vital for a company deeply embedded in the consumer goods sector.
Beyond favourable external conditions, BUA Foods’ internal strategies are central to its ongoing success. The company actively pursues ongoing capacity expansions, aiming to improve utilization rates and deepen market penetration across its product portfolio. Specific focus areas, such as the rice segment, are targeted for significant volume growth, which is anticipated to further bolster the company’s top-line performance and consolidate its market leadership.
The consistent growth and strong financial performance position BUA Foods as a benchmark for stability and profitability within the Nigerian market. Its ability to generate substantial cash flow and maintain a high dividend payout ratio, even amid broader economic uncertainties, highlights effective management and a robust business model. This commitment to both operational excellence and shareholder value continues to attract significant investor interest.
BUA Foods’ expansion strategy, articulated by its leadership, aims to secure a larger share of Nigeria’s growing food market. This proactive approach, coupled with strategic investments in infrastructure and product development, underscores a long-term vision for sustainable growth. The company’s trajectory suggests a continued upward trend in both its market standing and its capacity to deliver substantial returns to its shareholders.
