BUA Foods Plc has closed the first half of 2026 with a profit after tax of N292.27 billion, a 12 per cent jump from the N260.1 billion it made in the same period last year, even though the company’s sales slowed.
According to the company’s unaudited financial results, profit before tax climbed 14 per cent to N314.9 billion, while operating profit rose 13 per cent to N320.5 billion. This came despite a 16 per cent drop in revenue, which slipped to N765.12 billion from N912.51 billion recorded in the first half of 2025.
BUA Foods blamed the revenue decline on moderated pricing across its major product lines, as the company tried to cushion customers from the effects of inflation. But it said tighter cost controls, more efficient operations and lower finance costs helped it grow profits.
Gross profit rose seven per cent to N363.23 billion, and the gross profit margin jumped sharply to 47.5 per cent from 37.2 per cent a year earlier. Operating profit margin also expanded, moving from 31 per cent to 42 per cent; an appreciation the company attributed to better cost discipline.
The food manufacturer’s balance sheet also grew stronger. Total assets rose 20 per cent to N1.67 trillion, while total equity climbed 41 per cent to N1.01 trillion, which the company says will support its future investment plans.
BUA Foods said it is pushing ahead with a major expansion drive that includes boosting its wheat milling capacity, finishing its edible oils business, launching a noodles line, and strengthening its manufacturing operations, moves it says will support Nigeria’s food security.
Speaking on the results, BUA Foods’ managing director, Ayodele Abioye, said the company showed strong resilience in the first half of the year, navigating a difficult business environment through disciplined cost management and an improved product mix. He said that despite the drop in revenue, the company still delivered double-digit growth across key financial measures.
Abioye added that the company’s focus for the rest of the year is to turn its operational gains into higher sales volumes while holding on to the profit improvements already made, with continued emphasis on execution, market share and long-term value for shareholders.
