BUA Foods Plc posted a 12 per cent increase in profit after tax for the first half of 2026, demonstrating resilience in a challenging operating environment as improved cost efficiency, stronger margins and disciplined execution offset a decline in revenue.
The food manufacturing giant reported a profit after tax of ₦292.27 billion for the six months ended June 30, 2026, up from ₦260.1 billion recorded in the corresponding period of 2025. Profit before tax rose by 14 per cent to ₦314.9 billion, while operating profit climbed 13 per cent to ₦320.5 billion.
Revenue, however, declined by 16 per cent to ₦765.12 billion, compared with ₦912.51 billion in the first half of last year, reflecting moderated pricing across key product categories amid inflationary pressures and changing market conditions.
Despite the lower turnover, the company improved profitability through tighter cost controls, enhanced supply chain efficiency and lower finance costs, resulting in significant expansion in operating margins.
Managing Director of BUA Foods, Ayodele Abioye, said the company’s performance underscored the strength of its operating model and its ability to navigate economic headwinds.
He noted that disciplined cost management, continuous improvements in supply chain execution and a more efficient product portfolio enabled the company to expand margins while delivering double-digit growth in key profitability indicators.
According to him, the focus in the second half of the year will be to translate operational gains into stronger sales volumes, sustain profitability improvements and increase market share while delivering long-term value to shareholders.
The company’s operational performance remained robust, with gross profit rising seven per cent to ₦363.23 billion. Gross profit margin improved significantly to 47.5 per cent, compared with 37.2 per cent in the corresponding period of 2025, while operating profit margin increased to 42 per cent from 31 per cent, reflecting stronger operational efficiency.
BUA Foods also strengthened its balance sheet during the period, with total assets increasing by 20 per cent to ₦1.67 trillion, while shareholders’ equity rose by 41 per cent to ₦1.01 trillion, providing additional capacity to finance future expansion.
The strong financial performance comes as the company accelerates one of the largest investment programmes in its history.
Ongoing projects include the expansion of wheat milling capacity, completion of its edible oils business, entry into the noodles segment and further investments in integrated manufacturing operations.
The company said the expansion is expected to boost domestic food production, reduce dependence on imports and support Nigeria’s long-term food security objectives.
Looking ahead, BUA Foods said it would continue to pursue growth through increased production capacity, innovation, operational excellence and market expansion, while maintaining a disciplined approach to profitability and shareholder value creation.