Get Guardian on GoogleBUA Foods Plc recorded an 11 per cent increase in profit after tax to N450.47 billion in the nine months ended September 30, 2026, as lower production and operating costs offset a 19 per cent decline in revenue.
The company’s unaudited financial results, released on Friday, showed that revenue fell to N1.15 trillion from N1.42 trillion in the corresponding period of 2025. Despite the drop in sales, profit after tax rose from N405.27 billion, while profit before tax increased by 11 per cent to N480.52 billion. Earnings per share also grew to N25.03 from N22.52.
The improved profitability was largely supported by a sharp reduction in the cost of sales, which fell by 34 per cent to N592.94 billion from the previous year’s level. This helped push gross profit up by six per cent to N552.90 billion, compared with N520.65 billion in the corresponding period.
Consequently, gross profit margin widened to 48.3 per cent from 36.7 per cent, indicating that the company retained a larger share of revenue after accounting for production costs, despite weaker sales.
Operating expenses also declined by 20 per cent to N66.99 billion from N83.65 billion, representing a reduction of N16.66 billion.
Selling and distribution expenses dropped by 15 per cent to N45.04 billion, while administrative expenses fell by 28 per cent to N21.95 billion.
The reduction in costs supported an increase in operating profit margin to 43 per cent from 31 per cent in the previous year.
Managing Director of BUA Foods, Ayodele Abioye, attributed the revenue decline to weaker pricing conditions and subdued consumer demand, saying the company maintained its profitability through cost controls, improved productivity and tighter execution across its operations.
“Despite a 19 per cent decline in revenue to N1.15 trillion, driven by softer pricing conditions and subdued consumer demand, we maintained a substantial improvement in profitability through effective cost optimisation, improved productivity and rigorous execution across the business,” he said.
However, the results indicate that the improvement in earnings was driven more by lower costs than increased sales. While revenue contracted by nearly a fifth, the cost of sales fell at a faster rate, allowing the company to expand its margins.
Abioye said the company would continue to focus on profitable growth, market penetration and operational efficiency, with further investment in its distribution network and route-to-market capabilities.
He added that the company would leverage its brands and supply chain to respond to changing consumer needs amid a challenging operating environment.
BUA Foods, listed on the Nigerian Exchange Limited, manufactures sugar, flour, pasta, rice and edible oils. The company was incorporated in 2021 following the consolidation of key businesses within BUA Group.
