Nigeria’s most valuable food maker, BUA Foods Plc, said its net profit rose moderately in the first three months of 2026, showing resilience despite the volatility that came with the Middle East war that has compressed corporate earnings.
Profit after tax for the quarter ended March 31, 2026, grew by 14 percent to N142.32 billion, compared to N125.28 billion last year, reflecting the company’s continued focus on cost discipline, operational efficiency, and value-driven execution.
However, revenue saw a modest decline to N394.6 billion from N442.1 billion in the corresponding period of 2025 due to moderated pricing following easing inflationary pressures and a more stable foreign exchange environment.
The unaudited results show a subtle but important shift in the company’s revenue engine, as pricing strategy and changing consumer demand reshape its product mix.
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Its traditional cash cows—sugar and flour—lost some weight in the revenue basket. Sugar’s contribution fell to 43 percent from 48 percent a year earlier, while flour dropped to 35 percent from 40 percent. The decline wasn’t driven by weak demand alone but reflects deliberate price adjustments aimed at staying competitive in a price-sensitive market.
The real story sits in pasta. Pasta nearly doubled its share of revenue to 18 percent from 9 percent, with sales jumping 70 percent to N70.6 billion. That surge signals a structural demand shift, as consumers increasingly pivot to relatively affordable, easy-to-prepare staples amid persistent inflationary pressure on household incomes.
Rice, though still a small contributor at 4 percent, also edged higher, supported by stable milling operations—suggesting BUA is gradually strengthening its foothold in Nigeria’s import-substitution narrative.
Gross profit rose by 9 percent to N175.65 billion, primarily driven by a reduction in input costs and improved efficiency across all business divisions. Operating profit grew by 11 percent to N154.6 billion benefiting from reduced costs of sales. This lifted operating profit margin by 800bps to 39 percent.
Earnings per share increased by 14 percent to N7.91, reinforcing continued value creation for shareholders. On the balance sheet front, total assets increased by 12 percent to N1.555 trillion driven by capacity expansion.
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“BUA Foods delivered resilient earnings in Q1 2026, underpinned by strong margin performance despite a challenging operating environment. EBITDA rose by 11% to N157.13 billion, reflecting effective cost containment, pricing discipline, and sustained margin expansion across core product portfolios,” Ayodele Abioye, managing director of BUA Foods, said.
“Looking ahead, while geopolitical risks continue to impact energy markets and global supply chains, the business remains well positioned for growth. Supported by a resilient operating model and disciplined execution, BUA Foods is focused on delivering sustainable, long-term value for investors, shareholders, and other stakeholders.”
As of the close of trading on Wednesday, shares of BUA Foods largely controlled by Africa’s third wealthiest man, remained unchanged from the previous day, when they grew nearly 9 percent to N967. That rise made it regain its spot as the most valuable stock on the country’s bourse with a market capitalisation of N17.4 trillion.
Telecom giant MTNN has, however, edged up after its shares rose 6.1 percent, pushing its valuation to N18.3 trillion.