BUA Foods’ Q1 profit soars 124% on strong staple demand
The company’s revenue also climbed 24% year-on-year to N442.1 billion (US$363.6 million), buoyed by strong performances in flour, rice, and pasta segments.
NIGERIA – BUA Foods Plc has kicked off 2025 with a stellar financial performance, posting a 124% surge in net profit to N125.28 billion (US$103 million) in the first quarter, according to its unaudited results.
The company’s revenue also climbed 24% year-on-year to N442.1 billion (US$363.6 million), buoyed by strong performances in flour, rice, and pasta segments, despite persistent macroeconomic challenges.
Flour sales led the growth, soaring 145% to N176.2 billion (US$144.9 million), while rice posted a remarkable 1617% increase to N13.02 billion (US$10.7 million), albeit from a low base.
Pasta also delivered a solid 12% year-on-year gain to N41.5 billion (US$34.1 million). However, revenue from sugar, the company’s largest product line, fell 11% to N211.3 billion (US$173.7 million), potentially due to pricing pressures or supply chain issues.
Gross profit rose 39% to N160.91 billion (US$132.4 million), pushing the gross margin up to 36.4%, an improvement of over 400 basis points from the same quarter in 2024. This reflects the company’s improved cost control, better local sourcing, and an effective pricing strategy.
However, the company also faced rising expenses. Selling and distribution costs increased 13% to N11.08 billion (US$9.1 million), and administrative expenses surged 147% to N11.32 billion (US$9.3 million), largely driven by inflation and logistics inefficiencies.
Despite this, BUA Foods more than doubled its earnings per share (EPS) to N6.96, up from N3.10 in Q1 2024. Shareholders’ equity rose 29.2% to N554.34 billion (US$456.6 million), thanks in large part to a 30% increase in retained earnings.
“Revenue increased by 24 percent, while net profit leapt by 124 percent to N125 billion, reaffirming our position as a leading food business on the Nigerian Exchange,” said Ayodele Abioye, Managing Director of BUA Foods.
“Our ongoing investments in production capacity, innovation and route-to-market are enabling the fulfillment of growing consumer demand,” he added.
This performance places BUA Foods among the top consumer goods companies on the Nigerian Exchange (NGX), both in profitability and investor value. Its vertically integrated operations, strategic sourcing proximity, and expansion into staple foods have helped cushion the impact of foreign exchange volatility and Nigeria’s reliance on food imports.
Analysts say the spike in rice revenue underscores BUA Foods’ strategic pivot toward local staples, aligning with government policies aimed at achieving food security and import substitution.
“BUA Foods is benefiting from economies of scale, an expanded product portfolio, and a more efficient supply chain. This gives them pricing power and allows them to pass through cost increases better than most peers,” said a Lagos-based investment analyst.
The performance comes amid Nigeria’s high inflation, which remains above 24%, straining consumer purchasing power and squeezing margins across the fast-moving consumer goods (FMCG) space.
Looking ahead, BUA Foods plans to deepen market penetration and invest in innovation. With Nigeria’s population nearing 230 million and a growing appetite for affordable, quality food products, the company is positioned to maintain its growth trajectory.
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