By Olusegun Obisanya
BUA Foods Plc has reported a 12 per cent increase in its profit after tax for the first half of 2026, demonstrating resilience despite a decline in revenue amid a challenging operating environment.
According to a statement, the food manufacturing company announced on Thursday that its unaudited financial results for the six months ended June 30, 2026, showed profit after tax rose to ₦292.27bn from ₦260.1bn recorded in the corresponding period of 2025.
Profit before tax increased by 14 per cent to ₦314.9bn, while operating profit climbed 13 per cent to ₦320.5bn, reflecting what the company described as disciplined execution, operational efficiency and prudent cost management.
However, revenue fell to ₦765.12bn from ₦912.51bn in the first half of 2025, as moderated pricing across key product categories and inflationary pressures weighed on earnings.
Despite the lower revenue, the company said improved supply chain execution, lower operating expenses and reduced finance costs helped sustain profitability and expand margins.
Commenting on the results, the Managing Director of BUA Foods, Ayodele Abioye, said the company remained resilient in the face of economic challenges.
He said, “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 optimized product portfolio mix.”
According to him, although revenue declined during the period, the company successfully improved profitability through stronger operational performance.
“Despite a 16 per cent 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,” he added.
The company also recorded improvements in key operational indicators during the review period. Gross profit increased by seven per cent to ₦363.23bn, while gross profit margin rose significantly to 47.5 per cent from 37.2 per cent in the corresponding period of 2025.
Operating profit margin also improved to 42 per cent from 31 per cent a year earlier, highlighting stronger operational efficiency.
BUA Foods further strengthened its balance sheet during the period, with total assets increasing by 20 per cent to ₦1.67tn, while shareholders’ equity rose by 41 per cent to ₦1.01tn.
The company said the stronger financial position would support ongoing strategic investments aimed at expanding production capacity and deepening local food manufacturing.
It disclosed that it is executing one of the biggest expansion programmes in its history, including investments to increase wheat milling capacity, complete its edible oils business, introduce noodles into its product portfolio and strengthen its integrated manufacturing operations.
Abioye said the company would focus on translating its operational gains into stronger sales volumes in the second half of the year.
“Looking ahead to the second half of the year, our focus is on converting our operational gains into volume growth while sustaining the profitability improvements achieved in H1. We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders,” he said.
The company expressed confidence that its continued investments in production, innovation, operational excellence and market expansion would support sustainable earnings growth while reinforcing its position as one of Africa’s leading food manufacturing companies.
