BUA Foods posts N292bn as H1 profit despite revenue decline

BUA Foods Plc recorded a profit after tax of N292.27bn for the first half of 2026 despite a 16 per cent decline in revenue, as improved operational efficiency, lower finance costs and disciplined cost management boosted profitability.

The company disclosed this in a statement issued on Thursday alongside its unaudited financial results for the six months ended June 30, 2026.

According to the statement, profit after tax rose by 12 per cent from N260.10bn recorded in the corresponding period of 2025 to N292.27bn, while profit before tax increased by 14 per cent to N314.90bn from N276.70bn.

Operating profit also climbed by 13 per cent to N320.50bn, reflecting what the company described as the resilience of its integrated operating model and operational efficiency.

However, revenue declined to N765.12bn from N912.51bn in the first half of 2025, representing a 16 per cent drop.

The company attributed the lower revenue to moderated pricing across its major product categories amid prevailing inflationary conditions but said stronger supply chain execution, reduced operating expenses and lower finance costs enabled it to improve profitability.

“The Company reported Profit After Tax of N292.27bn, representing a 12 per cent increase over the N260.1bn recorded in the corresponding period of 2025. Profit Before Tax grew by 14 per cent to N314.9bn, while Operating Profit increased by 13 per cent to N320.5bn, reflecting the resilience of the Company’s integrated operating model and sustained operational excellence.

“Revenue for the period stood at N765.12bn, compared to N912.51bn in the first half of 2025, reflecting the impact of moderated pricing across key product categories amidst inflationary pressures,” the statement read.

Managing Director of BUA Foods, Ayodele Abioye, said the company’s first-half performance reflected its ability to navigate a difficult operating environment while expanding profit margins.

“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility. Our performance reflects effective cost management, ongoing improvements in supply chain execution, and a more optimised product portfolio mix,” he said.

He added, “Despite a 16 per cent decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators. This outcome underscores the strength of our business model, the quality of execution across our operations, and our unwavering commitment to operational excellence.”

Abioye said the company would focus on translating operational improvements into higher sales volumes during the second half of the year.

“Looking ahead to the second half of the year, our focus is on converting our operational gains into volume growth while sustaining the profitability improvements achieved in H1. We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders,” he added.

The statement showed that gross profit rose by seven per cent to N363.23bn from N340.10bn in the corresponding period of last year.

Gross profit margin improved significantly to 47.5 per cent from 37.2 per cent, while operating profit margin increased to 42 per cent from 31 per cent, reflecting stronger operational efficiency despite lower turnover.

BUA Foods also strengthened its balance sheet during the period, with total assets increasing by 20 per cent to N1.67tn, while shareholders’ equity rose by 41 per cent to N1.01tn.

According to the company, the stronger financial position will support ongoing strategic investments aimed at expanding production capacity and strengthening its manufacturing operations.

It said it was accelerating one of the biggest expansion programmes in its history through investments in additional wheat milling capacity, the completion of its edible oils business, the introduction of noodles into its product portfolio and the expansion of its integrated manufacturing operations.

The company noted that the investments were expected to deepen domestic food production and contribute to Nigeria’s long-term food security objectives.

BUA Foods added that it would continue to pursue long-term growth through investments in production capacity, operational efficiency, innovation and market expansion, expressing confidence that the strategy would support sustainable earnings growth and consolidate its position among Africa’s leading food manufacturing companies.