The board of Nigeria’s agro-business and food giant- BUA Foods Plc, on Tuesday presented its unaudited results for the nine months ended September 30, 2025 with net profit surging by 100.6%, significantly outpacing the moderate 33% rise in revenue for the period, which was better than the 22% growth in cost of sales.
Revenue for the period rose to ₦1.42 trillion from ₦1.07 trillion, enabled by the substantial improvement in sales of flour, which improved by 52% to ₦591.5 billion, compared to the previous ₦389.9 billion; far behind the 4884% growth in the company’s Rice which yielded all of ₦79.5 billion, from ₦1.6 billion. The sugar segment recorded a 10% growth at ₦599.2 billion for the nine-months from ₦544.4 billion); 52% growth was reported in the Flour business, amounting to ₦591.5 billion from ₦389.9 billion; while Pasta segment improved its revenue to ₦150.5 billion, up by 12% from ₦134.8 billion in the preceding nine months “due to increased market demand for our Pasta products during the period under review.”
A further breakdown of the numbers showed that the company’s Sugar business remained its biggest revenue earner, with its contribution accounting for all of 42%, a marginal drop from the previous 51%, same as the flour division, jumping from 36%, “due both to increased volume and improved product mix. The contribution margin dropped marginally to 31% from 32% for the same period last year.”
The Pasta division contributed 10% to revenue, down from 13% in the 2024 nine months; the rice accounted for 6% of the revenue.
Cost of sales for the period increased by 22% from ₦736.97 billion in the similar period of last year to to ₦900.09 billion, an increase the company in a statement to the Nigerian exchange linked primarily to an increase in raw materials and energy cost, resulting in a gross profit of ₦520.647 billion, an increase of 56% from ₦333.82 billion, representing a gross profit margin of 36.7%, which is an improvement over the previous 31%. This means that for every Naira earned in sales revenue, the management converted 36.7 kobo to profit, an improvement in efficiency, compared to 31 kobo in the previous nine months.
Selling and distribution expenses equally soared 82% from ₦29.317 billion in the similar period of 2024 to ₦53.219 billion; administrative expenses rose by an even faster 109% from ₦14.545 billion to ₦30.433 billion, resulting in a 91% growth in total operating expenses at ₦83.653 billion, compared to ₦43/862 billion.
Other income however dropped by a drastic 98% to ₦587.4 million from ₦25.167 billion; resulting in an operating profit of ₦437.581 billion, a 38% growth over the ₦315.126 billion of last year.
Net finance costs dropped by 57.8% from ₦11.509 billion to ₦4.863 billion; with profit before tax growing from ₦215.656 billion to ₦432.579 billion, while the income tax of ₦27.307 billion, representing a 91.4% increase over the ₦14.267 billion of the prior nine months, left net profit at ₦405.271 billion from ₦201.389 billion.
Reacting to the results, Ayodele Abioye, the Managing Director, BUA Foods said the company “has once again demonstrated resilience and strategic agility. Our 9M 2025 performance, highlighted by a strong double-digit revenue growth and a 101% year-on-year increase in profit after tax to ₦405 billion, underscores a sustained growth trajectory supported by ongoing economic reforms and a progressively more stable business environment.
“Amid an improving operating backdrop, we delivered another solid quarter of progress. We remain focused on executing our strategic priorities, deepening end-to-end integration across the value chain and harnessing the expertise and commitment of our Board and employees, to sustain value creation,” he said, expressing gratitude to all our stakeholders for their continued trust and support.’’
