BUA Foods Plc expanded its total asset base by 20 per cent to N1.67tn during the first half of 2026, even as revenue declined by 16 per cent, with stronger profitability and a significantly larger equity position strengthening its capacity to finance long-term growth initiatives.

The company disclosed the performance in a statement released alongside its unaudited financial results for the six months ended June 30, 2026.

According to the financial update, total assets increased from N1.39tn recorded in the corresponding period of 2025 to N1.67tn, while total equity climbed by 41 per cent to N1.01tn, reinforcing the company’s financial strength for future investments.

“BUA Foods maintained a strong financial position, with Total Assets increasing by 20 per cent to N1.67tn, while Total Equity rose by 41 per cent to N1.01tn, providing a solid platform to support the Company’s long-term strategic investments,” the statement read.

The company said the stronger balance sheet supports one of the most significant expansion programmes in its history. Investments are being directed towards wheat milling, edible oils, noodles and integrated manufacturing operations to boost domestic food production and contribute to Nigeria’s food security.

Despite the increase in assets, revenue for the first half of 2026 fell to N765.12bn, down from N912.51bn in the same period of 2025, representing a 16 per cent decline. The company attributed the drop to moderated pricing across key product categories amid inflationary pressures.

However, earnings remained resilient. Profit after tax rose by 12 per cent to N292.27bn, compared with N260.10bn in the corresponding period of 2025.

Profit before tax also increased by 14 per cent to N314.90bn, while operating profit advanced by 13 per cent to N320.50bn, reflecting improved operational efficiency and disciplined cost management.

Commenting on the results, the Managing Director of BUA Foods Plc, Ayodele Abioye, said the company’s performance reflected its ability to navigate a difficult operating environment.

“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,” he said.

Abioye further stated:

“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.”

Looking ahead, he said the company intends to convert operational improvements into stronger sales volumes during the second half of the year while sustaining profitability.

“Looking ahead to the second half of the year, our focus is on converting our operational gains into volume growth while sustaining the profitability improvements achieved in H1. We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders,” he added.

The statement also revealed that gross profit increased by seven per cent to N363.23bn, while the gross profit margin improved to 47.5 per cent, up from 37.2 per cent a year earlier.

Operating profit margin similarly expanded to 42 per cent from 31 per cent, highlighting stronger returns driven by enhanced operational efficiency and tighter cost controls.

BUA Foods said it is continuing to invest in manufacturing capacity, production efficiency and new product categories as part of its long-term growth strategy aimed at reinforcing its position as one of Africa’s leading food manufacturers.

The company added that these investments are expected to deepen local food production, expand its market presence, support sustainable earnings growth and contribute to Nigeria’s long-term food security objectives.

Source: Punch