BUA Foods Plc grew its nine-month pre-tax profit to N480.52 billion for the period ended September 2026, an 11.08% increase from the N432.58 billion reported a year earlier. The gain came even as revenue contracted, with lower production and operating costs lifting profitability.
In the third quarter, pre-tax profit reached N165.64 billion, up 2.80% from N161.12 billion in the second quarter of 2026 and 5.86% higher than the N156.47 billion recorded in the third quarter of 2025.
For the nine-month period, the company reported:
- Revenue of N1.15 trillion, down 19.35% from N1.42 trillion. - Gross profit of N552.90 billion, up 6.19% from N520.65 billion. - Operating profit of N492.50 billion, up 12.55% from N437.58 billion. - Profit after tax of N450.47 billion, up 11.15% from N405.27 billion. - Earnings per share of N25.03, up 11.15% from N22.52.
Third-quarter revenue stood at N380.72 billion, down 25.09% from N508.22 billion, while profit after tax rose 8.95% to N158.20 billion from N145.20 billion.
Measured against December 2025, total borrowings including overdrafts but excluding lease liabilities declined 19.52% to N315.22 billion from N391.69 billion. Total assets eased 1.83% to N1.36 trillion from N1.39 trillion, while cash and short-term deposits climbed 135.94% to N132.99 billion from N56.36 billion.
Managing Director Ayodele Abioye attributed the revenue decline to softer pricing and subdued consumer demand. He said cost optimisation, improved productivity and operational discipline supported profitability.
Nine-month cost of sales fell 34% to N592.94 billion, outpacing the drop in revenue, a result management linked to lower raw-material and energy costs as well as exchange-rate stability. Gross margin consequently widened to 48.3% from 36.7%.
Sugar generated N495.1 billion, down 17% and representing 43% of group sales, with management citing competitive pricing initiatives. Flour revenue dropped 30% to N415.1 billion, contributing 36%, on softer demand. Pasta provided a partial offset, rising 32% to N198.1 billion as demand and volumes improved, and its contribution margin climbed to 43% from 37%; pasta accounted for about 17.3% of disclosed group revenue. Rice revenue fell 53% to N37.5 billion, roughly 3% of sales.
