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BUA Foods Plc segment or subsidiary BUA Sugar Limited has dethroned Dangote Sugar Refinery Plc on revenue, first time ever for the company, according to data gathered by MoneyCentral.
The sugar segment of BUA Foods, alone, brought in N735.50 billion in revenue during 2024. That beat Dangote Sugar’s sales for the period, which came in at N661.18 billion, according to data gathered by MoneyCentral.
Analysts are sanguine that the diversified product base of BUA Foods that has emerged the largest producer of the sweetener in Nigeria will continue to magnify Group’s top line growth much faster than peer rival who is struggling with huge foreign exchange losses.
BUA’s victory stems from its focus on investments in expansion projects as it continues to provide a solid foundation for further growth and competitiveness.
The company sources its main raw materials and food commodities from agricultural producers both domestically and outside the country as it consolidates on its backward integration policies, which is aimed at significantly reducing imports and bolster local production.
To further develop the agricultural value chain and enhance local sourcing, as part of its initiative, BUA Foods plans to expand its farm-to-table initiatives to involve collaboration with external growers to source wheat and edible oils.
While Dangote Sugar and most of the consumer goods firms have been recording recurring losses after tax due to foreign exchange revaluation losses as they are engulfed by macroeconomic headwinds, BUA Foods is thriving.
For instance, BUA Foods posted a profit after tax (PAT) of N265.99 billion as at December 2024.
On the other hand, Dangote Sugar posted a loss of after tax of N192.61 billion.
While investors have sold Dangote Sugar’s stock leading to a 1-year return of -45.76% because of uncertainty about the company’s earnings, BUA Foods has a price to earnings ratio of 27 times.
Established in 2005, the Sugar Division of BUA Foods Plc has two ultramodern and automated sugar refineries in Apapa, Lagos and Port Harcourt that utilise state-of-the-art equipment to refine high-quality products for industrial uses.
The sugar refineries have a total combined installed refining capacity of 1.5 million MT.
The sugar refineries transform raw sugar into crystalline white granulated sugar, which is utilised by manufacturers of pharmaceuticals, bakeries and confectionaries, food, beverages, and dairy products etc.
In 2019, BUA Sugar completed the installation of the Eastern Sugar Refinery in Port Harcourt, Rivers State. The Port Harcourt refinery in Rivers State is the only sugar refinery in Nigeria located outside of Lagos State.
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