BUA Foods Grows H1 Profit by 12% to N292.3bn Despite Revenue Decline
BUA Foods Plc has reported a 12 per cent increase in profit after tax for the first half of 2026, demonstrating resilience amid a challenging business environment as improved cost efficiency, stronger operating margins and disciplined execution helped offset a decline in revenue.
The food manufacturing company posted a profit after tax of N292.27 billion for the six months ended June 30, 2026, compared with N260.1 billion recorded during the corresponding period in 2025.
Its unaudited financial results also showed that profit before tax rose by 14 per cent to N314.9 billion, while operating profit increased by 13 per cent to N320.5 billion, underscoring the company’s ability to improve earnings despite softer sales.
Revenue, however, fell by 16 per cent to N765.12 billion from N912.51 billion in the first half of 2025. The company attributed the decline to moderated pricing across key product categories amid persistent inflationary pressures and changing market conditions.
Despite the lower turnover, BUA Foods recorded stronger profitability by implementing tighter cost controls, improving supply chain efficiency and reducing finance costs, leading to a significant expansion in operating margins.
Commenting on the results, the Managing Director of BUA Foods, Ayodele Abioye, said the company’s performance reflected the strength of its operating model and its ability to navigate prevailing economic challenges.
According to him, disciplined cost management, continuous improvements in supply chain execution and a more efficient product portfolio enabled the company to expand its margins while delivering double-digit growth across key profitability indicators.
Abioye said the company’s priority in the second half of the year would be to convert operational improvements into stronger sales volumes, sustain profitability gains and increase market share while continuing to deliver long-term value to shareholders.
The company’s operational performance remained robust during the review period, with gross profit rising by seven per cent to N363.23 billion.
Gross profit margin improved significantly to 47.5 per cent from 37.2 per cent recorded in the corresponding period of 2025, while operating profit margin increased to 42 per cent from 31 per cent, highlighting improved operational efficiency and better cost management.
BUA Foods also strengthened its financial position during the period, with total assets increasing by 20 per cent to N1.67 trillion. Shareholders’ equity rose by 41 per cent to N1.01 trillion, providing the company with additional financial capacity to support future expansion plans.
The strong first-half performance comes as the company advances one of the largest investment programmes in its history.
Among the projects currently underway are the expansion of its wheat milling capacity, the completion of its edible oils business, entry into the noodles segment and further investments in integrated manufacturing operations.
The company said these investments are expected to enhance domestic food production, reduce Nigeria’s dependence on imported food products and contribute to the country’s long-term food security objectives.
Looking ahead, BUA Foods said it would continue to pursue sustainable growth through increased production capacity, product innovation, operational excellence and market expansion, while maintaining a disciplined approach to profitability and shareholder value creation.
