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🇳🇬 Nigeria /Economy & Trade

BUA Foods posts N292bn as H1 profit despite revenue decline

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

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  • BUA Foods Plc reported a profit after tax of N292.27 billion in the first half of 2026, a 12% increase from the previous year, despite a 16% decline in revenue.
  • The company attributed the profit growth to improved operational efficiency, lower finance costs, and disciplined cost management, which offset moderated pricing due to inflation.
  • Despite a revenue drop to N765.12 billion from N912.51 billion, BUA Foods' managing director highlighted the company's resilience and ability to expand profit margins in a challenging environment.

BUA Foods Plc achieved a significant 12% rise in profit after tax, reaching N292.27 billion in the first half of 2026. This growth occurred even as the company's revenue saw a 16% decrease, falling to N765.12 billion from N912.51 billion in the same period of 2025.

The Company reported Profit After Tax of N292.27bn, representing a 12 per cent increase over the N260.1bn recorded in the corresponding period of 2025. Profit Before Tax grew by 14 per cent to N314.9bn, while Operating Profit increased by 13 per cent to N320.5bn, reflecting the resilience of the Company’s integrated operating model and sustained operational excellence.

— BUA Foods StatementThis quote details the company's financial performance for the first half of 2026, highlighting profit growth despite revenue challenges.

The company's improved profitability is credited to enhanced operational efficiency, reduced finance costs, and stringent cost management. These factors helped to boost margins and counteract the impact of moderated pricing across key product categories, a response to prevailing inflationary conditions.

Revenue for the period stood at N765.12bn, compared to N912.51bn in the first half of 2025, reflecting the impact of moderated pricing across key product categories amidst inflationary pressures.

— BUA Foods StatementThis quote explains the reason for the decline in revenue, linking it to pricing adjustments in response to inflation.

Ayodele Abioye, Managing Director of BUA Foods, emphasized the company's resilience in navigating a difficult operating environment. He stated that effective cost management, supply chain improvements, and an optimized product mix were crucial. "Despite a 16 per cent decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators," Abioye noted, underscoring the strength of their business model and operational excellence.

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 optimised product portfolio mix.

— Ayodele AbioyeThe Managing Director of BUA Foods explains the factors contributing to the company's performance in a difficult economic climate.

Looking ahead, Abioye indicated that the company's focus for the second half of the year will be on translating these operational improvements into higher sales volumes. This strategy aims to build on the company's performance despite the revenue challenges.

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.

— Ayodele AbioyeAbioye further elaborates on the company's ability to achieve profit growth despite revenue reduction, attributing it to business model strength and operational execution.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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