Categories: BusinessCompanies

H1 2026: BUA Foods posts N292bn profit as total assets hit N1.6trn

BUA Foods Plc has reported a profit after tax of N292.27 billion for the first half of the year ended June 30, 2026.

This represents a 12 per cent increase from N260.1 billion recorded in the corresponding period of 2025.

BUA Foods disclosed this in its unaudited financial results released on Thursday, July 30.

The profit before tax rose by 14 per cent to N314.9 billion from N276.8 billion, while operating profit increased by 13 per cent to N320.5 billion.

BUA Foods, however, recorded a 16 per cent decline in revenue to N765.12 billion from N912.51 billion in the first half of 2025.

The company attributed the revenue decline to moderated pricing across key product categories amid inflationary pressures but said improved operational efficiency, lower operating costs, and reduced finance costs supported stronger profitability.

Gross profit rose by seven per cent to N363.23 billion, while gross profit margin improved significantly to 47.5 per cent from 37.2 per cent recorded in the corresponding period of 2025.

The operating profit margin also increased to 42 per cent from 31 per cent, reflecting improved operational efficiency and disciplined cost management.

BUA Foods also reported a strong financial position, with total assets increasing by 20 per cent to N1.67 trillion, while total equity rose by 41 per cent to N1.01 trillion.

BUA Foods said the improved balance sheet would support its long-term investment plans.

The company said it was implementing 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.

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According to the company, the investments are expected to boost domestic food production and contribute to Nigeria’s food security.

It reaffirmed its commitment to sustained investments in production capacity, market expansion, innovation and operational excellence to drive long-term earnings growth and strengthen its position in Africa’s food manufacturing industry.

Commenting on the results, the Managing Director of BUA Foods Plc, Ayodele Abioye, said: “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.”

Segun Ojo

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