BUA Foods Doubles Profit, Bets Big On Capacity Expansion As It Targets Food Sector Leadership
…Set To Join the Noodles Fray, Complete Edible Oils Investment, Others
BUA Foods Plc has set out an ambitious new phase of growth anchored on major capacity expansion, entry into new product categories and a commitment to becoming Nigeria’s largest food manufacturing company, as shareholders endorsed the company’s long-term strategic direction at its Fifth Annual General Meeting held at the Transcorp Hilton Hotel, Abuja.
The meeting, which reviewed the company’s audited results for the financial year ended December 31, 2025, doubled as a platform for the Board to unveil a fresh growth trajectory that positions BUA Foods to disrupt Nigeria’s food manufacturing landscape and consolidate its place among Africa’s leading integrated food businesses.
Central to this next phase is an increase in wheat milling capacity, the planned introduction of noodles into the company’s product portfolio, the completion of its edible oils business, and continued investment across its integrated manufacturing operations. According to the company, these initiatives are collectively expected to deepen domestic food production, broaden consumer choice and reinforce its standing as one of Africa’s leading food manufacturers.
The company disclosed that its ongoing investments are projected to raise overall production capacity by more than 50 percent, with output in some divisions set to rise by as much as 100 percent as new capacities come on stream, spanning its sugar, flour, pasta, rice and edible oil businesses, alongside its planned entry into the noodles category.
The announcement comes on the back of what the company has described as a record year of financial performance. BUA Foods reported revenue of ₦1.77 trillion for the 2025 financial year, representing a 16 percent increase over the prior year, while Profit After Tax rose by 95 percent to ₦518.4 billion. Total assets grew by 27 percent to ₦1.39 trillion, with the company posting a return on assets of over 35 percent, which it says reflects the strength of its returns from a growing asset base.
Shareholders at the meeting approved all resolutions presented by the Board, including the audited financial statements for the year, the payment of a final dividend of ₦28.00 per ordinary share, amounting to ₦504 billion, the re-election of retiring Directors, the appointment of members of the Audit Committee and other statutory resolutions.
Speaking at the meeting, the Chairman of BUA Foods Plc, Alhaji Abdul Samad Rabiu, CFR, CON, framed the expansion drive as a strategic investment in Nigeria’s industrial future rather than a pursuit of scale for its own sake. He said the company’s growth ambitions were rooted in a commitment to national development, noting that as its expansion projects come on stream, BUA Foods would become the largest player in its sector, even as he insisted that “efficiency, transparency and disciplined management” remain the principles guiding the company, just as they did when it was the smallest major player in the industry.
In his statement to shareholders, Rabiu also situated the company’s growth strategy within the broader context of market structure, disclosing that four companies currently control almost 90 percent of Nigeria’s food manufacturing market, with BUA Foods the only indigenous company among them. He argued that building sufficient scale to compete on equal terms with every other player in the market was the surest way to strengthen competition, drive efficiency and innovation, and ultimately deliver better outcomes for consumers, investors and the wider economy. He pointed to the company’s five-year listing history as evidence of what disciplined execution can achieve, noting that despite being smaller than more established rivals at listing, BUA Foods consistently delivered stronger profitability and returns, a performance that he said reshaped investor expectations of transparency and governance across the sector.
On how the company intends to fund its expansion while continuing to reward shareholders, BUA Foods stated that its capital allocation strategy is built on balance and sustainability, with strong cash generation and disciplined financial management enabling it to pay dividends while sustaining its long-term growth ambitions. The company added that its major capital expansion projects continue to benefit from the support of its parent company, BUA Group, a structure it says preserves financial flexibility while accelerating strategic investments.
On the operating environment, the company acknowledged that inflation, elevated energy costs and exchange rate volatility remain persistent pressures on the manufacturing sector, but said its response has been to strengthen operational efficiency rather than rely on price-led growth. It cited continued optimisation of procurement, diversification of its energy mix, deeper local sourcing and strengthened supply chains as measures to enhance resilience and protect affordability for consumers, describing its 2025 profitability as a product of efficiency-led margin expansion rather than price increases.
The company also linked its expansion plans to Nigeria’s food security ambitions, stating that its investments in backward integration, local value chains and large-scale food processing are intended to increase domestic food production and reduce reliance on imports, in response to ongoing global concerns, including from the United Nations and the World Bank, about food insecurity risks facing the country.
BUA Foods reiterated that its immediate priority is the completion of its strategic capacity expansion projects, alongside efforts to optimise capacity utilisation, deepen market penetration and improve affordability through greater operational efficiency and economies of scale, initiatives it says will reinforce its market leadership and support sustainable long-term growth.
