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BUA Foods Plc kicked off 2025 with a stellar performance, posting a 124 percent surge in net profit to N125.28 billion, according to its unaudited first-quarter results.
The company’s top-line revenue also grew by 24 percent to N442.1 billion, underscoring robust consumer demand and improved internal efficiency despite ongoing macroeconomic headwinds.
The food manufacturing giant saw strong contributions across its business segments, particularly from flour and rice. Flour revenue jumped 145 percent to N176.2 billion, while rice posted an unprecedented 1617 percent increase to N13.02 billion, albeit from a lower base.
Read also: BUA Foods hits trillion-naira revenue on surging demand
Pasta also grew 12 percent year-on-year to N41.5 billion. However, sugar—the company’s flagship product—declined 11 percent to N211.3 billion, reflecting possible pricing pressure or supply disruptions.
Gross profit for the period rose by 39 percent to N160.91 billion, boosting the company’s gross margin to 36.4 percent—up by over 400 basis points from Q1 2024.
This points to improved cost management, local sourcing, and pricing strategy. However, operating costs also climbed, with selling and distribution expenses up 13 percent to N11.08 billion, and administrative costs surging 147 percent to N11.32 billion, largely attributed to inflationary pressures and logistics challenges.
Despite the rising costs, BUA Foods delivered strong earnings growth, with earnings per share (EPS) more than doubling to N6.96 from N3.10 in the same period last year.
Read also: BUA Foods to pay N234bn as final dividend
Shareholders’ equity also climbed to N554.34 billion, a 29.2 percent increase from FY 2024, largely driven by a 30 percent rise in retained earnings.
“Revenue increased by 24 percent, while net profit leapt by 124 percent to N125 billion, reaffirming our position as a leading food business on the Nigerian Exchange,” said Ayodele Abioye, managing director, BUA Foods. “Our ongoing investments in production capacity, innovation and route-to-market are enabling the fulfillment of growing consumer demand.”
This result places BUA Foods among the top-performing consumer goods firms on the NGX, both in terms of earnings and investor value.
Its vertically integrated model, proximity to raw materials, and growing footprint in staple food categories offer a buffer against Nigeria’s foreign exchange volatility and food import dependency.
Analysts say the sharp rise in rice revenue signals the company’s strategic pivot toward local staples in response to government policies encouraging food security and self-sufficiency.
The improved performance also comes at a time when Nigeria’s headline inflation continues to hover above 24 percent, eroding purchasing power and squeezing margins across the FMCG space.
“BUA Foods is benefiting from economies of scale, an expanded product portfolio, and a more efficient supply chain,” said an analyst at a Lagos-based investment firm. “This gives them pricing power and allows them to pass through cost increases better than most peers.”
Looking ahead, the company says it will focus on deepening market penetration and driving innovation. With Nigeria’s population nearing 230 million and a growing middle class, demand for affordable, quality food products is expected to remain resilient.
For investors, BUA Foods’ strong start to the year reinforces confidence in its long-term fundamentals and potential to deliver consistent value, particularly in a sector increasingly seen as central to Nigeria’s economic diversification agenda.
