BUA Foods assets rise to N1.67tn in H1 2026 as profit grows despite lower revenue, with the company expanding food production capacity

BUA Foods Plc has strengthened its financial position after recording a 20 per cent increase in total assets to N1.67 trillion in the first half of 2026, despite a decline in revenue during the period.

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The company disclosed the figures in its unaudited financial results for the six months ended 30 June 2026, showing improved profitability and a stronger equity base as it continues to expand its manufacturing operations.

According to the report, total assets increased from N1.39 trillion recorded in the same period of 2025 to N1.67 trillion, while shareholders’ equity rose by 41 per cent to N1.01 trillion.

BUA Foods said the stronger balance sheet provides a solid foundation for funding its long-term strategic investments across key areas of the food industry.

“BUA Foods maintained a strong financial position, with Total Assets increasing by 20 per cent to N1.67tn, while Total Equity rose by 41 per cent to N1.01tn, providing a solid platform to support the Company’s long-term strategic investments,” the company said.

The company’s performance came despite revenue falling by 16 per cent to N765.12 billion from N912.51 billion in the first half of 2025.

BUA Foods attributed the decline to moderated pricing across major product categories amid inflationary pressures affecting consumer markets.

However, stronger cost management and improved operational efficiency helped the company deliver higher earnings. Profit after tax increased by 12 per cent to N292.27 billion, compared with N260.10 billion recorded in the previous year.

Profit before tax also rose by 14 per cent to N314.90 billion, while operating profit increased by 13 per cent to N320.50 billion.

The company said the improved results reflected its ability to navigate a challenging business environment while maintaining profitability.

Managing Director of BUA Foods Plc, Ayodele Abioye, said the company’s performance demonstrated resilience and effective execution of its business strategy.

“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility. Our performance reflects effective cost management, ongoing improvements in supply chain execution, and a more optimised product portfolio mix,” Abioye said.

He added that the company would focus on increasing sales volumes and maintaining profitability in the second half of the year.

The company is currently implementing major expansion programmes involving wheat milling, edible oils, noodles and integrated manufacturing operations aimed at boosting domestic food production.

The growth comes as the company continues to invest in production capacity and new product categories to strengthen its position in Nigeria’s food manufacturing sector.

The financial results also showed that gross profit increased by seven per cent to N363.23 billion, while gross profit margin improved from 37.2 per cent to 47.5 per cent.

Operating profit margin also expanded from 31 per cent to 42 per cent, reflecting improved efficiency and tighter control of operating costs.

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BUA Foods said its ongoing investments would help increase local food production, expand market reach and support Nigeria’s broader food security goals.