Billionaire Abdul Samad Rabiu’s Companies Soar, Amassing N2.3 Trillion in 2023

In a monumental financial feat, Nigeria’s renowned billionaire investor, Abdul Samad Rabiu, has witnessed unprecedented success with his two flagship companies, BUA Cement and BUA Foods, boasting a remarkable net capital gain of N2.3 trillion in the fiscal year 2023. This extraordinary achievement solidifies Rabiu’s position as the billionaire with the highest capital gain among those holding controlling interests in companies listed on the Nigerian Exchange (NGX).

The staggering net gains signify a remarkable 194% year-on-year increase in market valuation, particularly benefiting Samad Rabiu, who maintains majority control over the shares of both companies. Despite earlier reports from Infostride News indicating a reduction of $2.5 billion in Rabiu’s wealth in 2023, primarily attributed to naira devaluation, the capital appreciation within these companies has more than doubled his wealth.

This success story has significantly contributed to the overall success of the Nigerian Exchange (NGX) in 2023. The market witnessed an impressive 45.90% appreciation, marking its fourth consecutive annual gain. The All-Share Index (ASI) closed at 74,773.77, and the market capitalization surged by N13 trillion year-on-year, reaching an impressive N40.92 trillion.

**Performance of BUA Cement and BUA Foods**

Within Rabiu’s diversified portfolio, BUA Foods emerged as a leader in consumer goods, experiencing an exceptional 206% year-to-date appreciation. The share prices of BUA Foods soared from N65/share in December 2022 to the current value of N193.40/share, reflecting an impressive 194.54% gain.

Fundamentally robust, BUA Foods exhibited a 54% increase in profits, reaching N105.6 billion in the first nine months of 2023. The company demonstrated an 80.95% year-on-year growth in revenue, totaling N524.428 billion, with a remarkable return on average equity at 43.42%.

In contrast, BUA Cement reported a marginal dip in its year-to-date value, experiencing a decline of 0.74% and closing the year at N3.28 billion in market valuation. Earnings per share also dropped to 225 kobo, a decrease from the 298 kobo reported in full-year 2022.

**Rabiu’s Strategic Moves and Challenges**

While Rabiu’s businesses faced challenges such as naira devaluation and increased operational costs, BUA Foods exhibited resilience, concluding the year 2023 on a strong note. This robust performance indicates potential dividend payments, providing a rewarding outcome for steadfast shareholders.

Despite challenges, Rabiu strategically bolstered his direct shares in BUA Cement by 56.37%, reaching a total ownership of 96.12%, valued at N3.22 trillion. This strategic move, executed on June 26th, 2023, underscores Rabiu’s confidence in the future growth of his company.

Recalling the events of 2022, BUA Foods, encompassing its five food businesses, including 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 amounted to 18 billion units, with a market capitalization of N720 billion upon listing.

Infostride News remains committed to providing comprehensive coverage of Abdul Samad Rabiu’s remarkable financial achievements and strategic moves in the ever-evolving landscape of the Nigerian business sector.