BUA Foods Plc reported a 12% increase in half-year profit after tax despite a double-digit decline in revenue, as lower operating and finance costs helped Nigeria’s leading food manufacturer offset softer pricing across its key product categories.
The company said on Thursday that profit after tax rose to N292.27 billion for the six months ended June 30, 2026, from an260.1 billion in the corresponding period last year.
Profit before tax increased 14% to N314.9 billion, while operating profit climbed 13% to N320.5 billion, indicating the resilience of its integrated operating model and improved operational efficiency.
Revenue, however, fell 16% to N765.12 billion from N912.51 billion a year earlier as moderated pricing across major product categories weighed on sales amid persistent inflationary pressures.
The company said stronger supply chain execution, prudent cost management and lower finance costs enabled it to sustain earnings growth despite the decline in turnover.
“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility,” Ayodele Abioye, Managing Director said.
“Our performance reflects effective cost management, ongoing improvements in supply chain execution, and a more optimized product portfolio mix.”
The company said the performance reflected continued operational discipline, with gross profit rising 7% to N363.23 billion. Gross profit margin expanded to 47.5% from 37.2% in the first half of 2025, while operating profit margin improved to 42% from 31%, highlighting stronger returns despite lower revenue.
“Despite a 16% decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators,” Abioye said.
“This outcome underscores the strength of our business model, the quality of execution across our operations, and our unwavering commitment to operational excellence.”
BUA Foods also strengthened its balance sheet during the period, with total assets increasing 20% to aN1.67 trillion and shareholders’ equity rising 41% to N1.01 trillion.
The company said the stronger financial position provides a solid foundation to support long-term strategic investments and expansion plans.
The earnings come as BUA Foods accelerates one of the largest expansion programmes in its history. The company is investing to increase wheat milling capacity, complete its edible oils business, introduce noodles into its product portfolio and strengthen its integrated manufacturing operations, initiatives it said would deepen domestic food production and support Nigeria’s long-term food security ambitions.
Looking to the second half of the year, the management said the priority would be to translate operational improvements into higher sales volumes while preserving the gains in profitability achieved during the first six months.
“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 H1,” Abioye said.
“We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders.”
BUA Foods, which is listed on the Nigerian Exchange, manufactures and distributes staple food products including sugar, flour, pasta, rice and edible oils, serving consumers across Nigeria and West Africa.
The company said it remains focused on long-term growth through continued investments in production, innovation, operational excellence and market expansion.