BUA Foods Battles Revenue Decline as Sales Drop 19%

BUA Foods Plc recorded a 19 per cent decline in revenue to N1.15 trillion in the nine months ended September 30, 2026, from the corresponding period of 2025, as softer pricing conditions and subdued consumer demand weighed on sales.

However, a sharp reduction in cost of sales and operating expenses helped the food manufacturing giant sustain profit growth, with profit after tax rising 11 per cent to N450.47 billion, compared with N405.27 billion recorded in the same period last year.

The company’s unaudited financial results showed that cost of sales fell by 34 per cent to N592.94 billion, from the prior-year level, reflecting lower input costs and a more stable foreign exchange environment.

The reduction in production costs supported an improvement in gross profit, which increased to N552.90 billion from N520.65 billion, while gross profit margin expanded significantly to 48.3 per cent from 36.7 per cent in the corresponding period of 2025.

BUA Foods also strengthened its cost-control position as total operating expenses declined by 20 per cent to N66.99 billion, from N83.65 billion.

A breakdown showed that 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 combined impact of lower production and operating costs boosted operating profitability, with operating profit margin expanding by 12 percentage points to 43 per cent from 31 per cent in the prior-year period.

Consequently, profit before tax rose by 11 per cent to N480.52 billion, while earnings per share increased by 11 per cent to N25.03, compared with N22.52 recorded in the corresponding period of 2025.

Commenting on the performance, managing director of BUA Foods Plc, Engr. Ayodele Abioye said, the nine-month results demonstrated the resilience of the company’s operating model and the benefits of disciplined cost and margin management.

He noted that, despite the decline in revenue, the company sustained profitability through cost optimisation, improved productivity and disciplined execution across its business operations.

Abioye said, the company would remain focused on driving profitable growth, expanding market penetration and sustaining operational efficiency.

He added that BUA Foods would continue to strengthen its brands, supply chain capabilities and distribution network to support long-term growth.