BUA Foods Targets Market Expansion, Efficiency As Profit Hits N450.5bn

BUA Foods Plc has said it will focus on expanding market penetration, protecting its efficiency gains and pursuing profitable growth, after cost cuts lifted its nine-month profit despite a sharp fall in revenue.

The company said it will build on its established brands and supply chain to reach more consumers and respond to changing demand.

The company reported an increase in gross profit to N552.90 billion for the nine months ended 30 September 2026, compared with N520.65 billion in the corresponding period of 2025.

Gross profit margin rose to 48.3 per cent, from 36.7 per cent in the prior-year period, reflecting improved cost efficiency and disciplined cost management.

The managing director Engr. Ayodele Abioye, said the company would keep investing in route-to-market capabilities, which he described as a solid foundation for future growth.

“Looking ahead, we remain focused on driving profitable growth, enhancing market penetration and maintaining operational efficiency,” he said.

The outlook follows unaudited results for the nine months ended 30 September 2026. Revenue fell 19 per cent to N1.15 trillion, which Abioye attributed to softer pricing and subdued consumer demand.

Further analysis of the company results showed that cost of sales dropped 34 per cent to N592.94 billion, which the company linked to lower input costs and a more stable foreign exchange environment.

Operating expenses fell 20 per cent to N66.99 billion from N83.65 billion. Selling and distribution costs declined 15 per cent to N45.04 billion, while administrative expenses dropped 28 per cent to N21.95 billion. Operating profit margin rose to 43 per cent from 31 per cent.

BUA Foods said it will lean on its manufacturing scale, distribution reach and market presence, across a portfolio of sugar, flour, pasta, rice and edible oils, to support long-term growth.

BUA Foods is listed on the Nigerian Exchange Limited. It was incorporated in 2021 following the consolidation of key BUA Group businesses and operates production facilities across Nigeria. It serves consumers in Nigeria and across West Africa.