BUA Foods expands margin as profit rises to N450bn

A leading Nigerian food manufacturing company, BUA Foods Plc, has recorded an increase in gross profit to N552.90 billion for the nine months ended 30 September 2026, compared with N520.65 billion in the corresponding period of 2025. Gross profit margin expanded significantly to 48.3%, from 36.7% in the prior-year period, reflecting improved cost efficiency and disciplined cost management.

The strong margin performance supported an 11% year-on-year increase in profit after tax to N450.47 billion, up from N405.27 billion in the corresponding period of 2025. The Company’s unaudited financial results demonstrate the resilience of its operating model and the impact of disciplined cost management, with profitability improving amid evolving market dynamics and a continued focus on operational efficiency.

A key driver of performance was the 34% reduction in cost of sales to N592.94 billion, reflecting lower topline costs and a more stable foreign exchange environment. Further demonstrating improved operating efficiency, total operating expenses decreased by 20% to N66.99 billion, compared with N83.65 billion in the corresponding period of 2025. Selling and distribution expenses declined by 15% to N45.04 billion, while administrative expenses reduced by 28% to N21.95 billion.

These improvements supported a 12-percentage-point expansion in operating profit margin, which rose to 43% from 31%. Profit before tax grew by 11% to N480.52 billion, while Earnings per share also increased by 11% to N25.03, compared with N22.52 in the prior-year period. Commenting on the results, Engr. Ayodele Abioye, Managing Director of BUA Foods Plc, 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. “The sustained strength of our brands and our continued investment in route-to-market capabilities provide a solid foundation for future growth. ‘‘Looking ahead, we remain focused on driving profitable growth, enhancing market penetration and maintaining 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.”