BUA Foods Plc reported a strong financial performance for the year ended December 31, 2025 with profit after tax rising to ₦518.39 billion, nearly doubling from ₦265.99 billion recorded in 2024.
Revenue increased to ₦1.77 trillion from ₦1.53 trillion in the previous year, representing sustained demand across its core food segments.
Cost of sales rose moderately to ₦1.04 trillion from ₦987.10 billion, but at a slower pace than revenue growth, while gross profit climbed to ₦737.26 billion from ₦540.82 billion.
Operating profit grew to ₦656.61 billion, up from ₦472.10 billion, supported by strong topline performance and controlled operating expenses.
Administrative expenses rose to ₦37.83 billion while selling and distribution costs increased slightly to ₦44.25 billion, indicating ongoing investment in distribution and brand positioning.
Finance costs declined to ₦146.94 billion from ₦203.20 billion, reflecting improved debt management and reduced financing pressure. Net finance costs dropped to ₦135.08 billion from ₦187.78 billion, contributing to the sharp increase in profitability.
Profit before tax stood at ₦521.53 billion, compared to ₦284.32 billion in 2024, while tax expenses declined sharply to ₦3.14 billion from ₦18.33 billion, further boosting net earnings.
Earnings per share increased to ₦28.80 from ₦14.78, reinforcing shareholder value and positioning the company among the top performers in Nigeria’s consumer goods sector.
From a balance sheet perspective, total assets expanded to ₦1.39 trillion from ₦1.10 trillion, driven by a significant increase in trade receivables and related party balances.
Cash and bank balances also improved to ₦56.36 billion from ₦31.31 billion, indicating stronger liquidity.
However, a closer review shows a notable rise in trade receivables and other assets to ₦101.89 billion from ₦18.35 billion, alongside a substantial increase in amounts due from related parties to ₦753.75 billion from ₦547.39 billion.
These movements may raise questions around working capital efficiency and related-party exposure.
Inventories declined to ₦81.38 billion from ₦118.40 billion, suggesting improved inventory turnover and supply chain efficiency.
Total liabilities increased slightly to ₦674.35 billion from ₦666.45 billion with borrowings remaining elevated at ₦365.94 billion, although marginally lower than the previous year. Notably, bank overdrafts rose sharply to ₦25.70 billion from ₦1,482, indicating increased short-term funding pressure.
Equity strengthened to ₦713.44 billion from ₦429.06 billion, driven by retained earnings growth, reflecting the company’s strong profitability during the year.
While the results demonstrate robust earnings growth and margin expansion, the significant increase in receivables and related-party balances introduces potential risks around cash flow conversion and financial transparency.
Overall, BUA Foods delivered a strong financial performance in 2025, supported by revenue growth, improved margins, and reduced finance costs.
However, investors are likely to monitor the quality of earnings, liquidity dynamics, and related-party exposures as key indicators of sustainability going forward.