BUA Foods Plc increased its profit after tax to N450.47 billion in the nine months to September 30, 2026, up 11.15 per cent from N405.27 billion in the same period of 2025, despite a 19 per cent slide in revenue. The company disclosed the results in its unaudited financial statements released on Friday. Revenue fell to N1.15 trillion from approximately N1.42 trillion a year earlier, a drop of about N270 billion, driven by softer pricing and weaker consumer demand.
The surge in profit came from aggressive cost management across the business. The cost of sales dropped by 34 per cent to N592.94 billion, enabling gross profit to climb by 6.19 per cent to N552.90 billion even as revenue fell. This expansion lifted the gross profit margin to 48.3 per cent from 36.7 per cent, meaning the company retained approximately N48.30 in gross profit from every N100 of revenue, compared with N36.70 a year earlier. Operating expenses also fell by 20 per cent to N66.99 billion, with selling and distribution expenses down 15 per cent to N45.04 billion and administrative expenses cut by 28 per cent to N21.95 billion.
The company attributed the improved profitability to lower production costs, reduced operating expenses and a more stable foreign exchange environment. Operating profit margin expanded to 43 per cent from 31 per cent, an increase of 12 percentage points. Profit before tax rose by 11 per cent to N480.52 billion, while earnings per share increased to N25.03 from N22.52. Managing Director Ayodele Abioye said the results demonstrated the resilience of the company's operating model and the benefits of disciplined cost and margin management.
The performance reflects the challenges facing food manufacturers in Nigeria, where weaker consumer demand and lower prices are pressuring revenues. For savers, borrowers, business owners and investors, the results show that large manufacturers can maintain profitability through operational efficiency even when sales decline and pricing power weakens. Looking ahead, Abioye said the company would continue investing in distribution capabilities and strengthening its market presence. BUA Foods, which operates in sugar, flour, pasta, rice and edible oils and is listed on the Nigerian Exchange Limited, said priorities for the remainder of the year included maintaining cost discipline, strengthening supply chains and expanding market penetration.