By Kehinde Victor
KEY POINTS
- BUA Foods’ profit after tax rose 11 per cent to N450.47 billion in the nine months ended September 2026.
- Revenue declined 19 per cent to N1.15 trillion amid softer prices and subdued consumer demand.
- Lower cost of sales and operating expenses helped lift gross profit margin to 48.3 per cent.
MAIN STORY
BUA Foods Plc increased its profit after tax by 11 per cent to N450.47 billion in the first nine months of 2026, despite a 19 per cent decline in revenue as softer prices and subdued consumer demand weighed on sales.
The company disclosed this in its unaudited financial results for the nine months ended September 30, released on Friday.
Profit after tax rose from N405.27 billion recorded in the corresponding period of 2025, while profit before tax increased by 11 per cent to N480.52 billion from N433.65 billion.
The improvement in earnings came as the food manufacturer reduced its production and operating costs. Cost of sales fell by 34 per cent to N592.94 billion, while total operating expenses declined by 20 per cent to N66.99 billion from N83.65 billion.
Consequently, gross profit increased to N552.90 billion from N520.65 billion, while gross profit margin expanded to 48.3 per cent from 36.7 per cent.
The company also recorded a 12-percentage-point increase in operating profit margin to 43 per cent from 31 per cent.
THE ISSUES
The results show that BUA Foods improved its profitability even as it generated less revenue than it did in the same period last year.
Revenue fell by 19 per cent to N1.15 trillion, which the company attributed to softer pricing conditions and subdued consumer demand.
However, lower expenses helped offset the pressure on sales. Selling and distribution expenses declined by 15 per cent to N45.04 billion, while administrative expenses fell by 28 per cent to N21.95 billion.
The company attributed the improved profitability to cost efficiency, cost management and a more stable foreign exchange environment.
Earnings per share also increased by 11 per cent to N25.03, compared with N22.52 in the corresponding period of 2025.
WHAT’S BEING SAID
“Our nine-month 2026 results demonstrate the resilience of BUA Foods’ operating model and the benefits of disciplined cost and margin management.” – Ayodele Abioye, Managing Director, BUA Foods.
“In spite of a 19 per cent decline in revenue to N1.15 trillion, driven by softer pricing conditions and subdued consumer demand, we maintained a substantial improvement in profitability through effective cost optimisation, improved productivity and rigorous execution across the business.” – Ayodele Abioye, Managing Director, BUA Foods.
WHAT’S NEXT
BUA Foods said it would continue to focus on profitable growth, expanding its market reach and maintaining operational efficiency.
The company also pointed to its brands and investment in route-to-market capabilities as foundations for future growth.
BOTTOM LINE
BUA Foods’ nine-month results show that stronger cost control helped it grow profit despite lower revenue. However, the decline in sales highlights the pressure that weaker consumer demand and softer pricing conditions continue to place on its business.
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