BUA Foods Plc raised nine-month profit as sales weakened, citing lower production costs and exchange-rate stability as key support for earnings despite subdued consumer demand.
The Nigerian food producer’s unaudited filing with the Nigerian Exchange showed profit after tax of ₦450.468 billion for the nine months ended Sept. 30, 2026, up from ₦405.271 billion a year earlier. Revenue contracted to ₦1.146 trillion from ₦1.421 trillion.
Cost of sales dropped 34% to ₦592.939 billion from ₦900.087 billion. Raw-material costs fell to ₦523.389 billion from ₦833.840 billion. BUA Foods attributed the lower costs to cheaper raw materials and energy, along with exchange-rate stability. Gross profit increased 6% to ₦552.897 billion, and the gross margin widened to 48.3% from 36.7%.
The company also reduced total operating expenses 20% to ₦66.993 billion. Selling and distribution expenses declined 15% to ₦45.043 billion, while administrative expenses fell 28% to ₦21.950 billion.
Sales varied across its product lines. Sugar revenue decreased 17% to ₦495.1 billion, flour fell 30% to ₦415.1 billion and rice dropped 53% to ₦37.5 billion. The company linked some of the declines in sugar and rice to competitive pricing initiatives, and the flour decline to softer demand. Pasta revenue rose 32% to ₦198.1 billion, which BUA Foods attributed to stronger demand and sales volume.
Profit before tax increased 11% to ₦480.52 billion from ₦432.58 billion. Net finance costs climbed 146% to ₦11.98 billion; the company said lower finance income was available to offset finance expenses.
Managing Director Ayodele Abioye attributed the revenue decline to softer pricing conditions and subdued consumer demand. He said tighter cost control and productivity gains helped sustain profitability.
