{"id":4357,"date":"2026-10-30T16:15:54","date_gmt":"2026-10-30T16:15:54","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/30\/bua-foods-cost-cuts-lift-pre-tax-profit-to-n480-52-billion\/"},"modified":"2026-10-30T16:15:54","modified_gmt":"2026-10-30T16:15:54","slug":"bua-foods-cost-cuts-lift-pre-tax-profit-to-n480-52-billion","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/30\/bua-foods-cost-cuts-lift-pre-tax-profit-to-n480-52-billion\/","title":{"rendered":"BUA Foods\u2019 cost cuts lift pre-tax profit to N480.52 billion"},"content":{"rendered":"

BUA Foods Plc reported pre-tax profit of N480.52 billion for the nine months ended September 2026, up 11.08% from N432.58 billion a year earlier.<\/p>\n

This is as lower production and operating costs offset weaker revenue.<\/p>\n

Third-quarter pre-tax profit stood at N165.64 billion, up 2.80% from N161.12 billion in Q2 2026 and up 5.86% from N156.47 billion in Q3 2025.<\/p>\n

Key Highlights<\/strong><\/h4>\n

For the nine months ended September 2026:<\/strong><\/p>\n

\n
    \n
  • Revenue<\/strong>: N1.15 trillion (Down 19.35% YoY from N1.42 trillion).<\/li>\n
  • Gross profi<\/strong>t: N552.90 billion (Up 6.19% YoY from N520.65 billion).<\/li>\n
  • Operating profit<\/strong>: N492.50 billion (Up 12.55% YoY from N437.58 billion).<\/li>\n
  • Pre-tax profit:<\/strong> N480.52 billion (Up 11.08% YoY from N432.58 billion).<\/li>\n
  • Profit after tax:<\/strong> N450.47 billion (Up 11.15% YoY from N405.27 billion).<\/li>\n
  • Earnings per share:<\/strong> N25.03 (Up 11.15% YoY from N22.52).<\/li>\n<\/ul>\n<\/blockquote>\n

    For Q3 alone:<\/strong><\/h4>\n
    \n
      \n
    • Revenue<\/strong>: N380.72 billion (Down 25.09% YoY from N508.22 billion).<\/li>\n
    • Gross profit:<\/strong> N189.66 billion (Up 4.60% YoY from N181.32 billion).<\/li>\n
    • Operating profit:<\/strong> N171.97 billion (Up 12.58% YoY from N152.76 billion).<\/li>\n
    • Pre-tax profit:<\/strong> N165.64 billion (Up 5.86% YoY from N156.47 billion).<\/li>\n
    • Profit after tax:<\/strong> N158.20 billion (Up 8.95% YoY from N145.20 billion).<\/li>\n<\/ul>\n<\/blockquote>\n

      Balance-sheet comparisons are against December 2025:<\/strong><\/h4>\n
        \n
      • Total borrowings, including overdrafts and excluding lease liabilities: N315.22 billion (Down 19.52% from N391.69 billion).<\/li>\n
      • Total assets: N1.36 trillion (Down 1.83% from N1.39 trillion).<\/li>\n
      • Cash and short-term deposits: N132.99 billion (Up 135.94% from N56.36 billion).<\/li>\n<\/ul>\n

        Managing Director Ayodele Abioye attributed the revenue decline to softer pricing and subdued consumer demand, while identifying cost optimisation, improved productivity and operational discipline as support for profitability.<\/p>\n

        Driving the numbers<\/strong><\/h4>\n

        BUA Foods\u2019 earnings growth came primarily from improved margins.<\/p>\n

          \n
        • Nine-month cost of sales fell by 34% to N592.94 billion, outpacing the decline in revenue. Management attributed the reduction to lower raw-material and energy costs, alongside exchange-rate stability.<\/li>\n
        • The reported gross margin consequently increased to 48.3% from 36.7%.<\/li>\n
        • Sugar generated N495.1 billion in revenue, down 17%, and accounted for 43% of group sales.<\/li>\n
        • Flour revenue declined by 30% to N415.1 billion, contributing 36%. Management linked sugar\u2019s performance to competitive pricing initiatives and flour\u2019s decline to softer demand.<\/li>\n<\/ul>\n

          Pasta provided a partial offset, with revenue increasing by 32% to N198.1 billion as demand and sales volumes improved. Its contribution margin rose to 43% from 37%.<\/p>\n

            \n
          • Pasta represented approximately 17.3% of disclosed group revenue, although the release reports an 18% contribution.<\/li>\n
          • Rice revenue fell by 53% to N37.5 billion, accounting for approximately 3% of sales.<\/li>\n<\/ul>\n

            Operating expenses declined by 20% to N66.99 billion, supported by lower logistics and administrative costs. Other income also increased to N6.59 billion from N587.40 million.<\/p>\n

            However, net finance costs rose by 146% to N11.98 billion. Gross finance costs increased to N12.96 billion from N11.91 billion, while finance income dropped to N985.68 million from N7.05 billion.<\/p>\n

            Market reaction<\/strong><\/h4>\n

            BUA Foods closed unchanged at N706.60 and its share price was also flat over the past month.<\/p>\n

            The stock trades at 27.6 times earnings, with a stated market capitalisation of N13.69 trillion, placing it among the exchange\u2019s most valuable companies.<\/p>\n

            Source: <\/p>\n

            Nairametrics<\/div>\n","protected":false},"excerpt":{"rendered":"

            BUA Foods Plc reported pre-tax profit of N480.52 billion for the nine months ended September 2026, up 11.08% from N432.58 billion a year earlier. This is as lower production and… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4357","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/4357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=4357"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/4357\/revisions"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=4357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=4357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=4357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}