Profit at BUA Foods Plc, Nigeria’s largest food and fast-moving consumer goods (FMCG) company by market capitalisation, grew to its highest in the last five years, buoyed by strong cost management and operational efficiency, according to its latest unaudited financial statement.
The food maker owned and controlled by Africa’s second richest man AbdulSamad Rabiu delivered a 12 percent profit growth in the first six months of this year, even as revenue slowed by 16 percent year-on-year to N765.1 billion from N912.5 billion recorded last year.
The decline was driven by lower sales across all product categories, with maize recording the sharpest drop, as sales fell from N3.7 billion in H1 2025 to zero in H1 2026.
Gross profit, however, increased by 7 percent year on year, supported by effective cost control measures. Cost of sales declined by 29 percent year on year, cushioning the impact of lower revenue and boosting profitability.
Operating profit also increased by 12 percent year on year, driven by continued cost discipline, as both administrative expenses and selling and distribution expenses declined compared with the same period last year.
The company maintained profitability even as businesses continue to grapple with a tough environment, particularly the volatility in energy prices that have sent operating expenses up the roof.
“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,” Ayodele Abioye, managing director of BUA Foods said in a statement filed on the Nigerian Exchange.
“Despite a 16% 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.”
Abioye said the company is now focusing on converting its operational gains into volume growth while sustaining the profitability improvements achieved through the second half of the year.
BUA Foods maintained a strong balance sheet, with total assets increasing by 20 percent year on year to N1.67 trillion from N1.33 trillion in the corresponding period of 2025. The growth was primarily driven by a significant increase in amounts due from related companies and higher short-term deposits.
Total liabilities rose by a modest 3 percent year on year, largely due to higher income tax liabilities and increased short-term debt.
Shareholders’ equity increased by 41 percent year on year to N1.01 trillion from N689.13 billion, supported by a significant rise in retained earnings.
The company reported N145.24 billion in cash and cash equivalents, representing a 314 percent year-on-year increase. This was driven by N162.18 billion generated from operating activities, which more than offset N15.27 billion spent on investing activities and N32.41 billion used in financing activities.
BUA Foods remains the most capitalised FMCG company on the Nigerian Exchange (NGX). The company has delivered a year-to-date share price gain of 5.78 percent, with its stock currently trading at N845.10.