BUA Foods Profit Grows by 98.6% to N260bn in H1-2025

BUA Foods Profit Grows by 98.6% to N260bn in H1-2025

BUA Foods Plc. grew profit by 98.6% year on year to N260.069 billion in the first half of 2025, according to details obtained from its results for the unaudited H1 financials for the period ended 30 June 2025.

The company revenue increased by 36% to N912.5 billion in H1 2025 from N672.3 billion in the comparable period in 2024. BUA said the strong revenue growth was as result of an improvement recorded across revenue segment.

Its cost of sales also increased by 26% to N573.18 billion in H1 2025 from N453.95 billion driven primarily by an increase in raw materials and energy cost. Margin strengthened as revenue growth eclipsed year on year surge in costs of sales in the period.

Its figures revealed that gross profit surged by 55% to N339.33 billion in H1 2025 from N218.44 billion in the equivalent period in 2024.

In alignment with the increase, gross profit margin appreciated by 470 basis points to 37.2% in H1 2025 versus 32.4% posted 12 months ago.

BUA Foods reported that selling and distribution expenses increased by 94.1% to N35.63 billion in H1 2025 fromN18.36 billion due to an increase in logistics expenses within the period.

Its administrative expenses also increased by 92% to N19.36 billion in H1 2025 from N10.08 billion.

The company said its total operating expenses grew by 93% to N54.99 billion in H1 2025 from N28.45 billion on the back of an increase in selling and distribution cost along the supply chain to customers.

Operating profit grew by 41% to N284.8 billion in H1 2025 compared to N202.3 billion posted in H1-2024, benefiting from top line growth driven by strategic pricing policies.

Also, operating profit margin appreciated by 120 basis points to 31.2% in H1 2025 from 30%in the previous period.

Finance Cost (Net) dropped by 12.3% to N9.13 billion in H1 2025 from N10.41 billion due to lesser finance costs within the reporting period.

At the close of the period, BUA Foods profit before tax increased significantly by 101% to N276.1 billion in H1 2025 from N137.19 billion in the equivalent period in 2024.

In alignment, profit before tax margin appreciated by 985 bps to 30.3% in H1 2025 from 20.4% achieved 12 months ago. BUA Foods’ profit after tax grew by 99% to N260.07 billion in H1 2025 from N130.9 billion with Earnings per Share (EPS) of N14.45 in H1 2025,up by 99% year on year from N7.27 in the corresponding period.

Its revenue breakdown showed that Sugar division contributed 44% to revenue in H1 2025 versus 55% in the first half of 2024. Sugar revenue grew by 8% to N398.08 billion in H1 2025 from N369.8 billion 12 month ago.

The increase in revenue is due majorly to price adjustments within the period. The Flour division contributed 41% to revenue in H1 2025, up from 34% in the equivalent period in 2024. The company said revenue increased by 66% to N378.2 billion in H1 2025 from N227.3 billion, driven by increased sales volume and strategic pricing within the period.

The contribution margin increased to 33% from 32% for the same period last year. Pasta division The Pasta division contributed 11% to revenue in H1 2025 as against 11% reported in the comparable period in 2024..

Revenue from Pasta segment increased by 31% to N96.9 billion in H1 2025 from N74.04 billion in the equivalent period last year. The increase in sales volume is due to increased market demand for our Pasta products during the period under review.

There was also a 16% increase in production volume to 76,233 tons in H1 2025 from 65,644 tons last year. Its contribution margin increased to 37% from 31% for the same period last year. Rice division

The Rice division contributed 4% to the revenue in H1 2025. Revenue increased by 2923% to N39.3 billion in H1 2025 from N1.3 billion. There was also a significant increase in production volume to 32,919 tons in H1 2025 from 1,130 tons

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said: “We are encouraged by the sustained performance recorded in the second quarter of 2025, amidst an improving macroeconomic environment.

“Key indicators such as inflation and a deepened exchange rate margin, continue to shape consumer behaviour and operational decisions; however, our resilience as a business remains evident through consistent topline and bottom-line growth driven by our time tested and unique strategic business model.”

“Looking ahead, we remain committed to strengthening our growth levers, driving agility through our integrated supply chain systems and continued investments across all manufacturing operations.

“Our outlook for 2025 remains positive, with a clear focus on driving sustainable growth, maintaining affordability, and deepening our contribution to alleviating national food supply challenges. We appreciate the continued trust and hard work of our stakeholders.” #BUA Foods Profit Grows by 98.6% to N260bn in H1-2025 Unilever Nigeria Profit Rises by 225%, Declares Interim Dividend