BUA Foods nine-month profit rises 11% to US$335M
Lower cost of sales and operating expenses strengthened profitability despite a 19% decline in revenue, while earnings per share increased to N25.03.
NIGERIA – BUA Foods Plc increased its gross profit to N552.90 billion (US$411.15M) for the nine months ended September 30, 2026, from N520.65 billion (US$387.17M) in the corresponding period of 2025, as improved cost efficiency supported higher profitability.
The Nigerian food manufacturer’s gross profit margin expanded to 48.3%, compared with 36.7% a year earlier. Profit after tax rose 11% to N450.47 billion (US$334.98M) from N405.27 billion (US$301.37M), according to the company’s unaudited financial results.
The improvement was supported by a 34% reduction in cost of sales to N592.94 billion (US$440.92M), which the company attributed to lower input costs and a more stable foreign exchange environment.
Total operating expenses also declined by 20% to N66.99 billion (US$49.82M) from N83.65 billion (US$62.20M) in the prior-year period. Selling and distribution expenses fell 15% to N45.04 billion (US$33.49M), while administrative expenses decreased 28% to N21.95 billion (US$16.32M).
These reductions contributed to an expansion in operating profit margin to 43%, from 31% in the corresponding period of 2025. Profit before tax increased 11% to N480.52 billion (US$357.33M), while earnings per share rose 11% to N25.03, compared with N22.52 a year earlier.
Despite the stronger earnings, BUA Foods recorded a 19% decline in revenue to N1.15 trillion (US$855.16M), which Managing Director Engr. Ayodele Abioye attributed to softer pricing conditions and subdued consumer demand.
Abioye said: “Our nine-month 2026 results demonstrate the resilience of BUA Foods’ operating model and the benefits of disciplined cost and margin management. Despite a 19% decline in revenue to N1.15 trillion, driven by softer pricing conditions and subdued consumer demand, we maintained a substantial improvement in profitability through effective cost optimisation, improved productivity and rigorous execution across the business.”
He added: “The sustained strength of our brands and our continued investment in route-to-market capabilities provide a solid foundation for future growth.”
Abioye said the company would continue prioritising profitable growth, market penetration and operational efficiency.
“While the operating environment remains dynamic, BUA Foods is well-positioned to leverage its scale, strong market positions and execution capabilities to deliver sustainable long-term value,” he said.
The company said its focus on cost optimisation, productivity and distribution capabilities remained central to its operating strategy as it pursued further growth.
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