BUA Foods reports N508bn profit after tax

BUA Foods Plc has reported a profit after tax of N507.7bn for the year ended 31 December 2025, representing a 91 per cent increase from N266.0bn recorded in 2024. The growth was supported by higher turnover, improved gross profit, and controlled operating expenses.

The Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2025, as filed on the Nigerian Exchange recently, showed that the group’s turnover rose to N1.80tn in 2025 from N1.53tn in 2024, reflecting a 17.9 per cent increase. Cost of sales also rose to N1.13tn from N987.1bn, resulting in a gross profit of N672.2bn, up from N540.8bn in the previous year.

Operating profit for the year was N565.4bn, compared with N472.1bn in 2024, while administrative expenses increased to N40.46bn from N28.56bn. Selling and distribution expenses rose to N68.73bn from N40.26bn. Net finance costs, including finance income and finance costs, amounted to N14.39bn, down from N187.8bn in 2024, largely due to reduced borrowing costs.

The company also recorded finance exchange losses of N16.1bn, which impacted total profit before tax. Profit before tax stood at N534.9bn, up from N284.3bn in 2024, representing an 88 per cent increase year-on-year.

For the company alone, profit after tax reached N322.5bn, compared with N263.2bn in 2024, while earnings per share rose to 28.21 kobo from 14.78 kobo in 2024.

On the balance sheet, BUA Foods Group’s total assets grew to N1.39tn from N1.10tn, driven by an increase in current assets, particularly cash and short-term deposits, which reached N844.2bn from N547.4bn, while non-current assets, including property, plant, and equipment, stood at N394.9bn.

The group’s total equity strengthened to N702.8bn, up from N429.1bn, supported by growth in retained earnings, which rose to N694.7bn. Total liabilities amounted to N683.5bn, marginally higher than N666.4bn in 2024.

According to the Managing Director, Ayodele Abioye, BUA Foods’ market position, both domestically and regionally, remains strong due to its efficient and effective supply chain.

“For us, we continue to drive operational efficiency, product quality, and customer satisfaction while maintaining a disciplined expansion strategy in an evolving economic landscape,” Abioye said.

The Acting Chief Financial Officer, Michael Ehimah, noted that diversifying energy sources and improving supply chain efficiency helped cushion the impact of rising input costs. He added that preserving a healthy balance sheet while funding key growth initiatives will remain a priority in 2026.

Looking ahead, BUA Foods plans to complete its sugar backward integration programme, which is expected to allow the company to refine over 220,000 metric tonnes of sugar in the first phase. The company will also continue its expansion across other business divisions.

The MD emphasised that BUA Foods will remain focused on margin preservation in a competitive environment while advancing ongoing expansion projects. He added that the board and management are confident in the company’s strong fundamentals and its ability to deliver sustainable long-term value to shareholders.

BUA Foods closed the 2025 financial year as the most valued company on the Nigerian Exchange, with a market capitalisation exceeding N14tn, reflecting strong investor confidence and operational performance in the consumer goods sector.