BUA Foods Plc reported pre-tax profit of N480.52 billion for the nine months ended September 2026, up 11.08% from N432.58 billion a year earlier.

This is as lower production and operating costs offset weaker revenue.

Third-quarter pre-tax profit stood at N165.64 billion, up 2.80% from N161.12 billion in Q2 2026 and up 5.86% from N156.47 billion in Q3 2025.

Key Highlights

For the nine months ended September 2026:

  • Revenue: N1.15 trillion (Down 19.35% YoY from N1.42 trillion).
  • Gross profit: N552.90 billion (Up 6.19% YoY from N520.65 billion).
  • Operating profit: N492.50 billion (Up 12.55% YoY from N437.58 billion).
  • Pre-tax profit: N480.52 billion (Up 11.08% YoY from N432.58 billion).
  • Profit after tax: N450.47 billion (Up 11.15% YoY from N405.27 billion).
  • Earnings per share: N25.03 (Up 11.15% YoY from N22.52).

For Q3 alone:

  • Revenue: N380.72 billion (Down 25.09% YoY from N508.22 billion).
  • Gross profit: N189.66 billion (Up 4.60% YoY from N181.32 billion).
  • Operating profit: N171.97 billion (Up 12.58% YoY from N152.76 billion).
  • Pre-tax profit: N165.64 billion (Up 5.86% YoY from N156.47 billion).
  • Profit after tax: N158.20 billion (Up 8.95% YoY from N145.20 billion).

Balance-sheet comparisons are against December 2025:

  • Total borrowings, including overdrafts and excluding lease liabilities: N315.22 billion (Down 19.52% from N391.69 billion).
  • Total assets: N1.36 trillion (Down 1.83% from N1.39 trillion).
  • Cash and short-term deposits: N132.99 billion (Up 135.94% from N56.36 billion).

Managing Director Ayodele Abioye attributed the revenue decline to softer pricing and subdued consumer demand, while identifying cost optimisation, improved productivity and operational discipline as support for profitability.

Driving the numbers

BUA Foods’ earnings growth came primarily from improved margins.

  • Nine-month cost of sales fell by 34% to N592.94 billion, outpacing the decline in revenue. Management attributed the reduction to lower raw-material and energy costs, alongside exchange-rate stability.
  • The reported gross margin consequently increased to 48.3% from 36.7%.
  • Sugar generated N495.1 billion in revenue, down 17%, and accounted for 43% of group sales.
  • Flour revenue declined by 30% to N415.1 billion, contributing 36%. Management linked sugar’s performance to competitive pricing initiatives and flour’s decline to softer demand.

Pasta provided a partial offset, with revenue increasing by 32% to N198.1 billion as demand and sales volumes improved. Its contribution margin rose to 43% from 37%.

  • Pasta represented approximately 17.3% of disclosed group revenue, although the release reports an 18% contribution.
  • Rice revenue fell by 53% to N37.5 billion, accounting for approximately 3% of sales.

Operating expenses declined by 20% to N66.99 billion, supported by lower logistics and administrative costs. Other income also increased to N6.59 billion from N587.40 million.

However, net finance costs rose by 146% to N11.98 billion. Gross finance costs increased to N12.96 billion from N11.91 billion, while finance income dropped to N985.68 million from N7.05 billion.

Market reaction

BUA Foods closed unchanged at N706.60 and its share price was also flat over the past month.

The stock trades at 27.6 times earnings, with a stated market capitalisation of N13.69 trillion, placing it among the exchange’s most valuable companies.