BUA Foods Posts N292.27 Billion H1 Profit Despite Lower Revenue

BUA Foods Plc reported a strong profit performance for the first half of 2026 despite recording lower revenue as reduced production costs, lower operating expenses and improved cost efficiency strengthened profitability.

According to the company’s unaudited financial results for the six months ended June 30, 2026, group revenue declined by 16.2 percent to N765.12 billion, compared with N912.51 billion recorded in the corresponding period of 2025.

The decline in turnover was offset by a substantial reduction in the cost of sales, which fell to N401.89 billion from N573.18 billion a year earlier. As a result, gross profit increased 7 percent to N363.23 billion, up from N339.33 billion in the first half of 2025.

The stronger gross margin translated into higher operating earnings. Operating profit rose 12.5 percent to N320.52 billion, compared with N284.82 billion recorded in the corresponding period last year.

BUA Foods also benefited from lower financing costs during the period. Net finance costs declined to N5.64 billion from N9.13 billion a year earlier, while finance income stood at N495.69 million.

Consequently, profit before tax increased 14.0 percent to N314.88 billion, compared with N276.10 billion recorded in the first half of 2025.

After accounting for an income tax expense of N22.61 billion, the company reported profit after tax of N292.27 billion, representing a 12.4 percent increase from N260.07 billion posted in the corresponding period of the previous year.

The improved earnings boosted shareholder returns, with earnings per share rising to N16.24, compared with N14.45 recorded a year earlier.

On the company’s standalone financial statements, revenue declined to N565.96 billion from N681.57 billion, while profit after tax increased to N186.65 billion, compared with N159.22 billion in the same period of 2025.

BUA Foods also maintained cost discipline across its operations. Administrative expenses declined to N14.50 billion from N19.36 billion, while selling and distribution expenses dropped to N30.44 billion from N35.63 billion, contributing to the improvement in operating margins.

The first-half performance highlights BUA Foods’ ability to sustain earnings growth despite softer revenue, reflecting stronger operational efficiency, disciplined cost management and improved profitability across its business segments.

With continued focus on production efficiency, cost optimisation and value-added manufacturing, the company appears well positioned to strengthen profitability and deliver sustainable returns to shareholders in the second half of 2026.