BUA Foods Plc’s flour and rice segments have emerged as star performers in the company’s unaudited nine-month 2025 results, collectively powering a 33% surge in total group revenue to N1.42 trillion from N1.07 trillion in the corresponding period of 2024.
The Flour division recorded a 52% revenue jump to N591.5 billion, compared to N389.9 billion last year, driven by increased production volume and an improved product mix.
According to the performance report filed at the Nigerian Exchange Limited (NGX), the Rice division posted an extraordinary 4,884% increase in turnover to N79.5 billion from just N1.6 billion in the same period last year — reflecting the ramp-up of BUA’s new large-scale rice milling operations.
The Sugar division, which remains a cornerstone of BUA’s business, grew 10% to N599.2 billion, while Pasta revenue increased by 12% to N150.5 billion, buoyed by stronger market demand and expanded distribution networks.
Together, these gains lifted group gross profit by 56% to N520.65 billion, while profit before tax doubled to N432.58 billion.
The company attributed its strong performance to strategic pricing, improved efficiency, and deeper integration across its value chain.
Managing Director Ayodele Abioye said the company’s diversified portfolio continues to yield positive results, noting that “our product segments are now better balanced to serve both domestic and export markets.”
Profit Doubles, EPS Soar 101%
BUA Foods’ overall profitability soared during the period, as profit after tax jumped 101% to N405.27 billion from N201.39 billion recorded in the same period of 2024.
The strong earnings growth came on the back of higher sales volumes and tighter cost management.
According to the company, operating profit rose 39% to N437.58 billion, while gross profit margin improved to 36.7% from 31% last year, reflecting stronger operational efficiency despite rising energy and input costs.
Earnings per share (EPS) also doubled to N22.52, signaling enhanced shareholder value.
Return on equity rose to 68% from 47%, and return on assets improved to 33% from 18%, highlighting more effective capital utilisation.
Abioye described the results as evidence of the company’s resilience and strategic agility amid Nigeria’s evolving macroeconomic environment.
“Our 9M 2025 performance underscores a sustained growth trajectory supported by ongoing economic reforms and a progressively more stable business environment,” he stated.
Shareholders’ Equity Rises
Beyond earnings, BUA Foods also recorded significant improvements in its financial position, underscoring long-term balance sheet health.
Shareholders’ equity climbed 40% to N600.33 billion from N429.06 billion in 2024, reflecting higher retained earnings and prudent reinvestment. Retained earnings alone increased 41% to N592.2 billion, driven by strong profitability.
Meanwhile, the company’s total assets rose 13% to N1.24 trillion, supported by trade expansion and capacity enhancement across production facilities, while total liabilities declined by 3.6% to N642.2 billion, showing improved capital discipline and reduced leverage.
Additionally, net finance cost dropped by 57.8% to N4.86 billion, as the company avoided new borrowings and maintained healthy operational cash flows.
Abioye reaffirmed the company’s commitment to long-term value creation, saying: “We remain focused on deepening integration across our value chain and harnessing the expertise of our people to sustain value creation.”
