BUA Foods Plc, led by Managing Director Engr. Ayodele Abioye, recorded an 11.15 per cent increase in profit after tax to ₦450.47 billion for the nine months ended September 30, 2026, despite a 19.35 per cent decline in revenue to ₦1.15 trillion, as lower production costs and reduced operating expenses strengthened its margins.

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The Nigerian food manufacturer’s unaudited financial statements, released on October 30, showed that gross profit increased by 6.19 per cent to ₦552.90 billion from ₦520.65 billion in the corresponding period of 2025.

Gross profit margin also widened to 48.3 per cent from 36.7 per cent, reflecting a significant reduction in the cost of sales.

Cost of sales fell by 34.1 per cent to ₦592.94 billion from ₦900.09 billion a year earlier. The company attributed the improvement to lower input costs and a more stable foreign exchange environment.

The reduction in production expenses helped offset weaker sales, with revenue falling from ₦1.42 trillion in the first nine months of 2025. BUA Foods attributed the decline to softer pricing conditions and subdued consumer demand.

Commenting on the results, Abioye said the company had maintained stronger profitability despite the challenging revenue performance.

“Our nine-month 2026 results demonstrate the resilience of BUA Foods’ operating model and the benefits of disciplined cost and margin management. Despite a 19% decline in revenue to N1.15 trillion, driven by softer pricing conditions and subdued consumer demand, we maintained a substantial improvement in profitability through effective cost optimisation, improved productivity and rigorous execution across the business,” he said.

Operating expenses also declined by 20 per cent to ₦66.99 billion from ₦83.65 billion in the prior-year period. Selling and distribution expenses dropped by 15 per cent to ₦45.04 billion, while administrative expenses fell by 28 per cent to ₦21.95 billion.

These reductions supported a 12-percentage-point expansion in operating profit margin to 43 per cent from 31 per cent. Operating profit rose by 12.55 per cent to ₦492.50 billion, while profit before tax increased by 11.08 per cent to ₦480.52 billion.

Earnings per share climbed to ₦25.03 from ₦22.52, representing an increase of about 11 per cent.

A breakdown of the company’s product categories, however, shows that the revenue decline was not uniform.

Sugar remained its largest revenue contributor, generating approximately ₦495.1 billion, down from about ₦599.2 billion in the corresponding period of 2025. Bakery flour revenue fell to ₦387.64 billion from ₦556.87 billion, while rice sales declined to ₦37.40 billion from ₦77.43 billion.

Pasta provided a notable counterpoint, with revenue rising to ₦198.11 billion from ₦150.49 billion, an increase of about 32 per cent. The growth helped cushion declines across some of the company’s other product lines.

The results also revealed a rise in net finance costs to ₦11.98 billion from ₦4.86 billion in the corresponding period of 2025.

Finance costs increased while finance income declined, partly offsetting gains from lower production and operating expenses.

BUA Foods’ cash and short-term deposits stood at ₦132.99 billion at the end of September, compared with ₦56.36 billion at December 2025. Its total borrowings, including bank overdrafts, also declined over the same period, providing further balance-sheet context to the earnings performance.

The company’s cash flow statement showed net cash from operating activities of ₦685.75 billion, compared with ₦324.82 billion in the corresponding period of 2025.

It also recorded dividend payments of ₦504 billion during the nine-month period, more than double the ₦234 billion paid in the comparable period a year earlier.

Abioye said the company would continue to build on the strength of its brands and distribution capabilities to support future growth.

“The sustained strength of our brands and our continued investment in route-to-market capabilities provide a solid foundation for future growth,” he said.

The nine-month performance highlights the contribution of cost management to BUA Foods’ earnings growth.

However, the decline in revenue points to the continuing challenge of sustaining sales amid weaker consumer demand and pricing pressures.

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The company’s ability to translate improved margins into durable growth will depend partly on a recovery in demand, stronger sales volumes and continued control of production costs.