BUA Foods Delivers Double Digit Profit as Margin Discipline Drives Growth

 

  • Company advances long term expansion strategy with significant investments in manufacturing capacity, new product categories and food security

Nigerian’s leading food manufacturing company, BUA Foods Plc has announced its unaudited financial results for the half year ended June 30, 2026, delivering another strong earnings performance as disciplined execution, operational efficiency and prudent cost management strengthens profitability across key product categories.

The Company reported Profit After Tax of ₦292.27 billion, representing a 12% increase over the ₦260.1 billion recorded in the corresponding period of 2025. Profit Before Tax grew by 14% to ₦314.9 billion, while Operating Profit increased by 13% to ₦320.5 billion, reflecting the resilience of the Company’s integrated operating model and sustained operational excellence.

Revenue for the period stood at ₦765.12 billion, compared to ₦912.51 billion in the first half of 2025, reflecting the impact of moderated pricing across key product categories amidst inflationary pressures. Despite the decline in revenue, BUA Foods sustained improved profitability through stronger systems supply chain execution, lower operating costs, and a reduction in finance costs.

Commenting on the results, the Managing Director of BUA Foods Plc, Engr. Ayodele Abioye, said:

“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 optimized product portfolio mix. Despite a 16% 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.

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.”

The Company’s operational performance remained particularly strong during the period. Gross Profit increased by 7% to ₦363.23 billion, while Gross Profit Margin expanded significantly to 47.5%, from 37.2% in the corresponding period of 2025.

Operating Profit Margin also improved to 42%, compared to 31% a year earlier, underscoring the Company’s ability to generate stronger returns through disciplined execution and operational efficiency.

BUA Foods maintained a strong financial position, with Total Assets increasing by 20% to ₦1.67 trillion, while Total Equity rose by 41% to ₦1.01 trillion, providing a solid platform to support the Company’s long-term strategic investments.

The Company’s strong first half performance comes as it accelerates one of the most significant expansion programmes in its history.

BUA Foods is investing substantially to expand wheat milling capacity, complete its edible oils business, introduce noodles into its product portfolio and further strengthen its integrated manufacturing operations.

These investments are expected to deepen domestic food production, while reinforcing Nigeria’s long-term food security drive.

Looking ahead, BUA Foods remains focused on executing its long-term growth strategy through continued investments in production, market expansion, operational excellence, and innovation.

The Company believes these initiatives will further support sustainable earnings growth and reinforce its position as one of Africa’s leading food manufacturing companies.

 

About BUA Foods Plc

BUA Foods Plc is a leading Nigerian food manufacturing and processing company listed on the Nigerian Exchange Limited. The Company is engaged in the processing, manufacturing, and distribution of essential food products, including sugar, flour, pasta, rice, and edible oils.

Incorporated in 2021 following the consolidation of key businesses under BUA Group, BUA Foods operates multiple production facilities across Nigeria and serves millions of consumers across Nigeria and West Africa.

The Company is committed to advancing food security, delivering high-quality and affordable food products, and creating sustainable value for stakeholders through innovation, operational excellence, and responsible business practices.

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