Key points
- Profit after tax rose 12% to N292.27 billion in the first half of 2026.
- Revenue declined 16% to N765.12 billion amid moderated product pricing.
- Improved margins and lower costs supported stronger profitability.
- Company is expanding wheat milling, edible oils and noodles production.
Main story
BUA Foods Plc has reported a profit after tax of N292.27 billion for the half-year ended June 30, representing a 12 per cent increase from N260.1 billion recorded in the corresponding period of 2025.
According to the company’s unaudited financial results released on Thursday, profit before tax increased by 14 per cent to N314.9 billion from N276.8 billion, while operating profit rose by 13 per cent to N320.5 billion.
Revenue, however, fell by 16 per cent to N765.12 billion from N912.51 billion recorded in the first half of 2025.
The company attributed the decline in revenue to moderated pricing across key product categories amid inflationary pressures but said stronger operational efficiency, lower operating costs and reduced finance costs drove improved profitability.
Gross profit increased by seven per cent to N363.23 billion, while gross profit margin improved to 47.5 per cent from 37.2 per cent a year earlier.
Operating profit margin also rose to 42 per cent from 31 per cent, reflecting improved cost management and operational efficiency.
BUA Foods reported a stronger balance sheet, with total assets rising by 20 per cent to N1.67 trillion and total equity increasing by 41 per cent to N1.01 trillion.
The company said it was executing one of its largest expansion programmes, including increasing wheat milling capacity, completing its edible oils business, introducing noodles into its product portfolio and strengthening integrated manufacturing operations.
It said the investments would support domestic food production and contribute to Nigeria’s food security.
Commenting on the results, Managing Director Ayodele Abioye said the company remained resilient despite a challenging operating environment.
“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.”
“In spite of 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.”
“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 the first half.”
“We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders.”
The issues
The results highlight how manufacturers are relying on tighter cost controls and operational efficiencies to protect profitability amid weaker pricing and persistent inflationary pressures. BUA Foods is also investing heavily in expanding production capacity as competition in Nigeria’s food manufacturing sector intensifies.
What’s being said
“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility.”
“In spite of a 16 per cent decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators.”
Bottom line
Despite lower revenue, BUA Foods delivered stronger earnings through improved efficiency and cost discipline, while positioning itself for future growth with major investments in production capacity and product expansion.
