BUA Foods Records N125bn Net Profit In Q1

UA Foods Plc has announced its unaudited financial results for the first quarter of 2025, demonstrating robust growth across key financial indicators.

The company recorded a significant revenue growth of 24 per cent to N442.1 billion in Q1 2025, up from N356.9 billion in the corresponding period of 2024. This impressive performance was driven by substantial increases in revenue from Flour, which soared 145 per cent to N176.2 billion, Pasta rose 12 per cent to N41.5 billion, and Rice recorded a remarkable increase of 1617 per cent to N13.02 billion. Sugar revenue, however, saw a slight 11 per cent quarter-on-quarter decrease to N211.3 billion from N238.2 billion in Q1 2024.

Gross profit grew by 39 per cent to N160.91 billion in Q1 2025, compared to N115.42 billion in Q1 2024. This growth led to an improved gross profit margin of 36.4 per cent, a 406 basis point increase from 32.3 per cent in the prior quarter.

Total operating expenses for the period increased by 56 per cent to N22.39 billion as against N14.37 billion in 2024, due to increases in selling and distribution expenses which rose 13 per cent to N11.08 billion driven by logistics costs, and administrative expenses up 147 per cent to N11.32 billion.

Despite the increase in operating expenses, BUA Foods achieved a substantial growth of 124 per cent in profit after tax to N125.28 billion in Q1 2025, compared to N55.82 billion in Q1 2024. Consequently, earnings per share also saw a significant increase of 125 per cent to N6.96 from N3.10 in the corresponding period.

The company’s total equities stood strong at N554.34 billion as of Q1 2025, representing a 29.2 per cent increase from N429.06 billion in full year 2024. This growth was mainly driven by a significant 30 per cent increase in retained earnings.

Speaking on the results, the managing director, BUA Foods, Engr. (Dr.) Ayodele Abioye said, “we are pleased to begin 2025 on a strong note, as our business continued to demonstrate resilience and adaptability amidst a still-evolving macroeconomic landscape.

“Despite operating in a high-cost environment, our proactive supply chain measures and improved internal efficiencies enabled us to sustain strong operational momentum.”

He noted that “revenue increased by 24 per cent, while net profit leaped by 124 per cent to N125 billion further reaffirming our position as a leading food business on the Nigerian Exchange Limited.

“Our ongoing investments in production capacity, product/package innovation and route-to-market development continue to impact our results positively, enabling fulfilment of customer and consumer demand.”

“As we look ahead, we remain focused on deepening our market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025,” he added.