BUA Foods Plc has once again proven its dominance in Nigeria’s fast-moving consumer goods (FMCG) space, reporting a stellar performance for the nine months ended September 30, 2025. The company delivered a Profit After Tax (PAT) of ₦405.3 billion, representing a 101% year-on-year increase from ₦201.4 billion in the corresponding period of 2024. This remarkable achievement reinforces BUA Foods’ ability to sustain growth, maintain cost discipline, and generate superior returns for investors even amid persistent macroeconomic headwinds.
Revenue Growth Driven by Strong Demand and Operational Efficiency
BUA Foods’ revenue grew by 33% to ₦1.42 trillion, compared to ₦1.07 trillion in the prior year. This growth was primarily fueled by robust demand across its product lines—particularly sugar, flour, and pasta—supported by strategic pricing initiatives and expanded production capacity. The company’s ability to meet growing consumer demand while maintaining affordability reflects its deep understanding of the Nigerian market and its strong brand equity.
Despite inflationary pressures and rising input costs, cost of sales increased by only 22%, reaching ₦900.1 billion compared to ₦737.0 billion in 2024. This increase, which was slower than revenue growth, demonstrates effective cost management and production efficiency. As a result, gross profit surged by 56% to ₦520.6 billion, and gross profit margin improved significantly from 31% to 36.7%. This margin expansion highlights the company’s success in controlling production costs and optimizing its supply chain.
Investments in Distribution and Expansion Support Long-Term Growth
During the review period, BUA Foods’ selling and distribution expenses rose by 82% to ₦53.2 billion, reflecting the company’s investment in deepening its market reach and strengthening its logistics network nationwide. Similarly, administrative expenses more than doubled to ₦30.4 billion, largely due to operational expansion, inflationary adjustments, and higher personnel costs associated with scaling up the business.
While total operating expenses nearly doubled to ₦83.7 billion, these were growth-driven expenditures, underpinning BUA Foods’ strategic focus on building long-term capacity and market presence. Importantly, these higher expenses did not erode profitability; instead, the company’s efficiency gains and revenue strength ensured continued margin improvement.
Profitability Strengthens Despite Reduced Other Income
Other income dropped sharply to ₦587 million, compared to ₦25.2 billion in the same period last year—largely due to the absence of one-off gains recorded previously. However, this decline underscores a positive shift: the company’s earnings in 2025 were generated almost entirely from core operations, not exceptional or non-recurring items.
This operational strength translated into an operating profit of ₦437.6 billion, representing a 39% increase from ₦315.1 billion in 2024. The operating profit margin improved to 30.8%, up from 29%, signaling effective management of production, distribution, and financing costs.
Efficient Capital Management Reduces Financing Burden
BUA Foods also achieved a remarkable 57.8% reduction in net finance costs, which fell to ₦4.86 billion from ₦11.5 billion in 2024. This indicates more efficient debt management, lower interest exposure, or improved borrowing terms. With a leaner balance sheet and lower finance costs, the company’s profitability was boosted even further.
Consequently, profit before tax doubled to ₦432.6 billion, compared to ₦215.7 billion last year, pushing the PBT margin to an impressive 30.5%, up from 20% in the previous year. After accounting for income tax of ₦27.3 billion, net profit stood at ₦405.3 billion, more than double the ₦201.4 billion reported in the same period of 2024.
Exceptional Returns for Shareholders
Earnings per share (EPS) mirrored this stellar growth, rising 101% to 22.52 kobo from 11.19 kobo in 2024. This reflects the company’s robust earnings capacity and continued commitment to delivering value to shareholders. Moreover, Return on Equity (ROE) surged to 68%, up from 47%, while Return on Assets (ROA) jumped to 33%, up from 10%. These metrics indicate exceptional efficiency in utilizing both equity and total assets to generate profits — a clear signal of strong management performance and a capital-efficient business model.
Solid Balance Sheet and Financial Stability
As of September 30, 2025, total assets grew 13% to ₦1.24 trillion, driven by expansion in inventories, receivables, and production infrastructure. This growth in the asset base reflects BUA Foods’ continued investment in capacity and raw material sourcing to support future expansion. Total equity rose by 40% to ₦600.3 billion, underscoring strong retained earnings and a solid capital structure.
At the same time, total liabilities declined by 3.6% to ₦642.2 billion, signaling prudent financial management and reduced leverage. The resulting improvement in the company’s equity-to-liability ratio highlights a healthier balance sheet and lower financial risk — critical indicators for investors assessing long-term stability.
Outlook: Positioned for Sustained Growth
Looking ahead, BUA Foods appears well-positioned to sustain its growth trajectory into the final quarter of 2025 and beyond. The company’s integrated business model, which spans sugar refining, flour milling, pasta production, and rice processing, provides both diversification and operational resilience. Ongoing investments in production capacity, logistics infrastructure, and innovation are expected to strengthen supply chain efficiency and support continuous volume growth.
In a statement accompanying the results, a company spokesperson noted that the strong performance reflects “the robustness of BUA Foods’ business model, disciplined cost management, and consistent consumer demand across its product portfolio.” The spokesperson added that as the company continues to invest in capacity expansion and sustainability initiatives, it remains focused on “delivering long-term growth and value for all stakeholders.”
