BUA Foods Profit Climbs to ₦450bn Despite Revenue Drop
BUA Foods Plc recorded a profit after tax of ₦450.47 billion in the first nine months of 2026, an 11 per cent increase from ₦405.27 billion in the corresponding period of 2025, even as revenue declined by 19 per cent.
The company disclosed the figures in its unaudited financial results for the nine months ended 30 September 2026, released on Friday.
Revenue fell to ₦1.15 trillion from about ₦1.42 trillion in the same period of 2025, a drop the company attributed to softer pricing conditions and subdued consumer demand.
Despite the lower turnover, gross profit rose 6.19 per cent to ₦552.90 billion from ₦520.65 billion. Gross profit margin expanded significantly to 48.3 per cent from 36.7 per cent.
The improvement was driven largely by a 34 per cent reduction in the cost of sales, which fell to ₦592.94 billion.
Total operating expenses also declined by 20 per cent to ₦66.99 billion. Selling and distribution expenses dropped 15 per cent to ₦45.04 billion, while administrative expenses fell 28 per cent to ₦21.95 billion.
Operating profit margin expanded by 12 percentage points to 43 per cent from 31 per cent. Profit before tax increased 11 per cent to ₦480.52 billion, and earnings per share rose to ₦25.03 from ₦22.52.
Managing Director Ayodele Abioye said the results demonstrated the resilience of the company’s operating model.
“Despite a 19 per cent decline in revenue to ₦1.15 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 stated.
He added that BUA Foods remains focused on driving profitable growth, enhancing market penetration and maintaining operational efficiency.
By Oyinkansola Shittu.
