BUA Foods Plc has reported a profit after tax of N292.27 billion for the first six months of 2026, with improved operational efficiency and lower finance costs helping the company overcome a decline in revenue.
The company's unaudited financial results for the half-year ended June 30, 2026, showed that profit after tax increased by 12 per cent from N260.10 billion in the corresponding period of 2025.
Profit before tax rose by 14 per cent to N314.90 billion, while operating profit climbed 13 per cent to N320.50 billion, reflecting stronger cost control and improved operational performance.
Revenue, however, fell by 16 per cent to N765.12 billion, compared with N912.51 billion recorded in the first half of last year.
According to the company, the decline was driven by moderated pricing across its major product categories as it responded to prevailing market conditions and inflationary pressures.
Despite the lower turnover, BUA Foods said disciplined cost management, enhanced supply chain efficiency and reduced finance costs enabled it to improve earnings and expand profitability.
Commenting on the results, the Managing Director, Ayodele Abioye, said the company had demonstrated resilience despite operating in a challenging economic environment.
He said strategic efforts to improve efficiency across the business had translated into stronger profit margins and sustained earnings growth.
"Our first-half performance reflects disciplined execution across the business. Although revenue declined by 16 per cent, we recorded double-digit growth in profitability through effective cost management, supply chain optimisation and an improved product mix," Abioye said.
He added that management would focus on translating the operational gains achieved in the first half into higher sales volumes during the remainder of the year.
"We remain committed to improving market share, sustaining profitability and creating long-term value for our shareholders through disciplined execution and continued operational excellence," he added.
The company's financial statements also showed that gross profit increased by seven per cent to N363.23 billion from N340.10 billion in the corresponding period of 2025.
Gross profit margin improved to 47.5 per cent from 37.2 per cent, while operating profit margin rose to 42 per cent, up from 31 per cent, highlighting improved efficiency across its operations.
BUA Foods also strengthened its balance sheet during the review period, with total assets rising by 20 per cent to N1.67 trillion, while shareholders' funds grew by 41 per cent to N1.01 trillion.
The company said the stronger financial position would support ongoing investments aimed at expanding production capacity and enhancing manufacturing capabilities.
It disclosed that it was accelerating major capital projects, including additional wheat milling capacity, the completion of its edible oils business, the launch of noodles production and the expansion of its integrated manufacturing operations.
BUA Foods said the investments were designed to deepen local food production, support Nigeria's food security agenda and position the company for sustained long-term growth while consolidating its leadership in Africa's food manufacturing industry.
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