BUA Foods Q1 2026 profit at N142bn despite 11% revenue decrease

BUA Foods Plc has reported a profit after tax of N142.32 billion for the first quarter ended March 31, 2026, marking a 14 per cent increase compared to N125.28 billion recorded in the same period last year.

The company disclosed the results in its unaudited financial statement released in Lagos, attributing the performance to cost discipline, operational efficiency, and improved execution across its business units.

However, revenue for the period declined by 11 per cent to N394.6 billion, down from N442.1 billion in Q1 2025. The company said the drop was driven by pricing adjustments linked to easing inflationary pressures and a more stable foreign exchange environment.

Despite the revenue dip, gross profit rose by nine per cent to N175.65 billion, supported by lower input costs and improved efficiency. Operating profit also climbed 11 per cent to N154.6 billion, while operating margin improved significantly to 39 per cent from 31 per cent.

Earnings per share increased by 14 per cent to N7.91, while total assets grew by 12 per cent to N1.555 trillion, reflecting ongoing capacity expansion.

Segment performance showed shifting contributions across product lines. Flour accounted for 35 per cent of revenue, down from 40 per cent in the previous year, while sugar dropped to 43 per cent from 48 per cent. In contrast, pasta surged to 18 per cent from nine per cent, driven by a 70 per cent jump in revenue to N70.6 billion.

Rice also recorded modest growth, contributing four per cent to revenue compared to three per cent previously, supported by steady milling operations.

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Managing Director Ayodele Abioye said the company maintained strong earnings despite a challenging environment, noting that efficiency gains and pricing discipline helped sustain profitability.

He added that while global risks such as geopolitical tensions and supply chain pressures persist, the company remains focused on long-term growth and shareholder value creation.