BUA Foods Reports Profit Growth Amid Revenue Decline

BUA Foods Plc (NGX: BUAFOODS)'s H1 2026 report shows a profit after tax increase of 12%, from N260.07 billion in H1 2025 to N292.27 billion. Profit before tax rose 14% to N314.88 billion, and operating profit climbed 13% to N320.52 billion.

Gross profit increased by 7% to N363.23 billion, with a gross margin expansion from 37.2% to 47.5%. However, revenue fell by 16%, from N912.51 billion in H1 2025 to N765.12 billion, with significant declines in product sales: sugar revenue fell 18%, flour by 27%, and rice by 20%.

The company achieved higher profits despite lower sales due to a 30% reduction in cost of sales, which dropped from N573.18 billion to N401.89 billion. Management acknowledged "softer consumer demand" and lower selling prices, indicating a focus on volume recovery in the second half of the year.

In Q2 alone, revenue fell to N370.50 billion from N470.22 billion, a decline of over 21%, while gross profit increased from N178.19 billion to N187.58 billion.