Nigeria’s billionaire investor, Abdul Samad Rabiu noticed his two flagship corporations BUA Cement and BUA Meals put up a web capital achieve of N2.3 trillion in 2023.
That is by far the very best capital achieve of any billionaire with a controlling curiosity in corporations listed on the NGX.
The web beneficial properties signify a 194% enhance 12 months on 12 months by way of market valuation for shareholders of the corporate, particularly Samad Rabiu who controls the vast majority of shares of the businesses.
Nairametrics the billionaire’s wealth was diminished by $2.5 billion in 2023 largely on account of naira devaluation.
Nevertheless, primarily based on capital appreciation, his wealth invested in these corporations greater than doubled.
This contributed to the landmark 12 months for the Nigerian Alternate (NGX), the place market appreciation hit marking its fourth consecutive annual achieve closing with an All-Share Index (ASI) of 74,773.77, and market capitalization rising by N13 trillion year-on-year, to succeed in N40.92 trillion
How the businesses carried out
BUA Meals, a flagship in Rabiu’s portfolio, emerged as the buyer items chief in market capitalization, experiencing an outstanding 206% year-to-date appreciation. Share costs soared from N65/share in December 2022 to the present worth of N193.40/share, reflecting a 194.54% achieve.
When it comes to fundamentals, BUA Meals exhibited sturdy financials, with a 54% enhance in earnings to N105.6 billion within the first 9 months of 2023. Income witnessed a formidable 80.95% YoY progress, reaching N524.428 billion, and return on common fairness stood at 43.42%.
In distinction, BUA Cement reported a slight dip in its year-to-date worth, with a decline of 0.74%, closing the 12 months at N3.28 billion in market valuation. Earnings per share dropped to 225 kobo, considerably decrease than the 298 kobo reported in full-year 2022.
Rabiu’s largest efficiency indicator stays BUA Meals, which demonstrated a staggering 197.6% market cap progress, emphasizing its resilience and strategic positioning available in the market.
- Rabiu’s companies confronted challenges comparable to naira devaluation and increased operational costs.
- Nevertheless, BUA Meals showcased resilience, ending robust in 2023. This efficiency alerts potential dividend funds, rewarding steadfast shareholders.
- Regardless of challenges, Rabiu strategically elevated his direct shares in BUA Cement by 56.37%, totalling 96.12% possession valued at N3.22 trillion. This transfer, executed on June twenty sixth, 2023, demonstrates Rabiu’s confidence in his firm’s future progress.
Recall, that in 2022, BUA Meals, a mix of its 5 meals companies comprising pasta, edible oil, sugar, rice, and flour was listed on the Nigerian Alternate Restricted by introduction at N40.00/s.
The entire shares admitted to buying and selling had been 18 billion models of shares, with a market capitalization of N720 billion upon itemizing.
