BUA Foods Posts 14% Profit Surge in Q1 2026 Despite Revenue Dip

News in Brief

-BUA Foods Plc reported a 14% rise in Q1 2026 profit after tax to N142.32 billion, driven by 39% operating margins despite an 11% revenue dip to ₦394.6 billion from moderated pricing.

-Gross profit grew nine per cent to ₦175.65 billion, with total assets hitting ₦1.555 trillion amid capacity expansions in flour, sugar, pasta, and rice segments.

BUA Foods Plc, a leading player in Nigeria's food processing sector, has announced a 14% increase in profit after tax to ₦142.32 billion for the first quarter ended March 31, 2026. The unaudited financial results, released on the Nigerian Exchange (NGX), highlight the company's ability to deliver moderate earnings growth and enhanced margins amid economic volatility.

This performance underscores BUA Foods' operational resilience in the agriculture and food industry, where staples like flour, sugar, pasta, and rice remain critical to Nigeria's food security. Despite challenges such as moderated pricing due to easing inflation and a stabilising foreign exchange market, the firm prioritised cost discipline and efficiency. 

Key Financial Highlights

Revenue for the quarter totalled ₦394.6 billion, marking an 11% decline from ₦442.1 billion recorded in Q1 2025. This drop was attributed to strategic price adjustments following reduced inflationary pressures and a more stable forex environment, which impacted pricing for key products like flour and sugar. However, gross profit climbed nine per cent to ₦175.65 billion, bolstered by lower input costs and streamlined operations across divisions.

Operating profit rose 11% to ₦154.6 billion from ₦138.9 billion in the prior year, with the operating profit margin expanding significantly by 800 basis points to 39% from 31% achieved in Q1 2025. Earnings per share (EPS) also improved by 14% to ₦7.91, demonstrating sustained value creation for shareholders. Total assets grew 12% to ₦1.555 trillion as of March 31, 2026, up from ₦1.387 trillion at the end of full-year 2025, driven by ongoing capacity expansions in milling and processing facilities.

EBITDA increased 11% to ₦157.13 billion, highlighting effective cost containment and margin expansion.

Management's Perspective

Engr. Ayodele Abioye, Managing Director of BUA Foods, commented on the results.

“BUA Foods delivered resilient earnings in Q1 2026, underpinned by strong margin performance despite a challenging operating environment. Profit after tax increased by 14% year on year to ₦142.32 billion, notwithstanding an 11% decline in revenue and modest volume growth. EBITDA rose by 11% to ₦157.13 billion, reflecting effective cost containment, pricing discipline, and sustained margin expansion across core product portfolios," he stated.

Looking forward, Abioye explained that while geopolitical risks continue to impact energy markets and global supply chains, the business remains well-positioned for growth. He revealed that a resilient operating model and disciplined execution support the model, helping it remain focused on delivering sustainable, long-term value for investors, shareholders, and other stakeholders.

This outlook is particularly relevant for agric entrepreneurs eyeing partnerships in flour milling, pasta production, or rice processing, as BUA leverages its integrated operations.