EARNINGS PRESS RELEASE
Regulated Information
BUA Foods Sustains Impressive Growth Narrative Profit Before Tax up by 101% to N276 BillionLagos, 31st July 2025 - BUA Foods Plc ("BUA Foods", or "the Company") announced its results for the unaudited H1 financials for the period ended 30 June 2025.
Group % Change | |||
In thousands of naira | H1 2025 | H1 2024 | Δ |
Revenue | 912,514,434 | 672,393,204 | 36% |
Cost of Sales | 573,182,244 | 453,954,166 | 26% |
Gross Profit | 339,332,190 | 218,439,038 | 55% |
Gross Profit Margin (%) | 37.2% | 32.5% | 470bps |
Selling and distribution expenses | (35,627,984) | (18,357,479) | 94% |
Administrative expenses | (19,357,785) | (10,087,599) | 92% |
Total operating expenses | (54,985,769) | (28,445,078) | 93% |
Other income | 476,418 | 12,268,781 | -96% |
Operating Profit | 284,822,839 | 202,262,741 | 41% |
Opex to Income margin Operating profit margin | 6% 31.2% | 4% 30% | 180bps 120bps |
Finance cost - net | (9,125,285) | (10,406,382) | 12.31% |
Profit before income tax | 276,104,552 | 137,188,733 | 101.3% |
PBT Margin (%) | 30.3% | 20.4% | 985bps |
Income Taxes | 16,034,663 | 6,258,493 | 156.2% |
Profit for the period | 260,069,889 | 130,930,240 | 98.6% |
Earnings Per share (Kobo) | 14.45 | 7.27 | 98.8% |
Return on Equity (%) | 37.74% | 30.52% | 722bps |
Return on Assets (%) | 19.51% | 11.95% | 756bps |
Total assets | 1,333,233,613 | 1,095,504,241 | 21.7% |
Total equity | 689,126,534 | 429,056,645 | 60.6% |
Total liabilities | 644,107,080 | 666,447,596 | -3.4% |
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."
Key Highlights of Group performance and financial review of H1 2025 unaudited results.
Revenue (N'Billion) 672913
+36%
PBT (N'Billion) 137276
+101%
Revenue
Total Assets (N'Billion) 1333 EPS (₦:K) 7.27
14.45 1096
+21.7%
+99%
Revenue grew by 36% to ₦912.5 billion in H1 2025 (H1 2024: ₦672.3 billion). This was due to an increase in all our reporting segments: 8% in Sugar to ₦398.1 billion (H1 2024: ₦369.8 billion), 66% in Flour to ₦378.2 billion (H1 2024: ₦227.3 billion), 31% in Pasta to ₦96.9 billion (H1 2024: ₦74.04 billion), and 2923% in Rice to ₦39.3 billion (H1 2024: ₦1.3 billion).
Cost of sales increased by 26% to ₦573.18 billion in H1 2025 (H1 2024: ₦453.95 billion) driven primarily by an increase in raw materials and energy cost.
Gross profit increased by 55% to ₦339.33 billion in H1 2025 (H1 2024: ₦218.44 billion). In alignment with the increase, grossprofit margin also appreciated by 470bps to 37.2% in H1 2025 (H1 2024: 32.4%).
Selling and distribution expenses increased by 94.1% to ₦35.63 billion in H1 2025 (H1 2024: ₦18.36 billion) due to an increase in logistics expenses within the period.
Administrative expenses also increased by 92% to ₦19.36 billion in H1 2025 (H1 2024: ₦10.08 billion)
Total operating expenses increased by 93% to ₦54.99 billion in H1 2025 (H1 2024: ₦28.45 billion) on the back of an increase in selling and distribution cost along the supply chain to customers.
Operating profit grew by 41% to ₦284.8 billion in H1 2025 (H1 2024: ₦202.3 billion) benefiting from top line growth driven by strategic pricing policies. Also, Operating profit margin appreciated by 120bps to 31.2% in H1 2025 (H1 2024: 30%).
Finance Cost (Net) dropped by 12.3% to ₦9.13 billion in H1 2025 (H1 2024: ₦10.41 billion) due to lesser finance costs within the reporting period.
Profit before tax increased significantly by 101% to ₦276.1 billion in H1 2025 (H1 2024: ₦137.19 billion). In alignment, profit before tax margin appreciated by 985bps to 30.3% in H1 2025 (H1 2024: 20.4%).
Profit after tax grew by 99% to ₦260.07 billion in H1 2025 (H1 2024: ₦130.9 billion). while the Earnings per Share (EPS) grew by 99% to N14.45 in H1 2025 from N7.27 in the corresponding period.
Total assets increased by 21.7% to ₦1.333 Trillion as of H1 2025 (FY 2024: ₦1.096 Trillion) driven largely by trade transactions and production capacity expansions.
Total liabilities decreased by 3.4% to ₦644.1 billion as of H1 2025 (FY 2024: ₦666.4 billion).
Total equity increased by 60.6% to ₦689.13 billion as of H1 2025 (FY 2024: ₦429.06 billion) largely driven by a significant growth of 62% in retained earnings to ₦681.1 billion as of H1 2025 (FY 2024:
₦420.9 billion).
Operating segment performance
Sugar division
The Sugar division contributed 44% to revenue in H1 2025 (H1 2024: 55%). Sugar revenue grew by 8% to ₦398.08 billion in H1 2025 (H1 2024: ₦369.8 billion). The increase in revenue is due majorly to price adjustments within the period.
Flour division
The Flour division contributed 41% to revenue in H1 2025 (H1 2024: 34%). Revenue increased by 66% to ₦378.2 billion in H1 2025 (H1 2024: ₦227.3 billion). The growth in revenue is due both to 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 (H1 2024: 11%). Revenue increased by 31% to ₦96.9 billion in H1 2025 (H1 2024: ₦74.04 billion). 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 (H1 2024: 65,644 tons). 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 ₦39.3 billion in H1 2025 (H1 2024: ₦1.3 billion). There was also a significant increase in production volume to 32,919 tons in H1 2025 (H1 2024: 1,130 tons).
For further information, please Contact: Abdulrasheed Olayiwola
Chief Financial Officer
E: Abdulrasheed.Olayiwola@buafoodsplc.com
M: +234 803 334 3914
Oluwasegun BakareHead, Strategy & Investor Relations
E: Oluwasegun.Bakare@buafoodsplc.com
M: +234 703 334 2064
BUA Foods Investor Relations: IR@buafoodsplc.com
Definition of terms
Gross profit refers to revenue minus cost of sales. Gross profit margin corresponds to gross profit as a % of revenue. Operating expenses corresponds to Selling and distribution expenses, Administrative expenses and Other operating expenses. EBITDA refers to earnings before interest, tax, depreciation and amortization. EBITDA margin corresponds to EBITDA as a % of revenue. Operating profit refers to gross profit minus operating expenses plus other operating income. Operating profit Margin corresponds to EBIT as a % of revenue. Profit before Tax corresponds to EBIT minus net finance (cost)/income and plus share of profit of associates and joint venture using the equity method. Profit before tax margin corresponds to profit before tax as a % of revenue. Return on equity corresponds to net profit reported to average total equity. Return on assets corresponds to net profit reported to average total assets. Earnings per share is profit after tax from continuing operations reported to weighted average number of shares.About BUA Foods Plc
BUA Foods Plc (NGX: BUAFOODS) is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The Company owns strategically located plants across Nigeria, in addition to a cordial alliance with local stakeholders in host communities. Additionally, BUA Foods is a resilient business built on a strong brand proposition and is an operator that has a well-known reputation for delivering high-quality products.
BUA Foods continues to invest in modern technology for efficient food production, innovatively expandingwith strategic partners across the value chain. The Company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.
Headquartered and listed in Nigeria, BUA Foods is one of the most capitalized companies on the NGX Exchange and a leading consumer goods firm by market value.
For more information visit https://www.buafoodsplc.com/overview/
Disclaimer
This announcement contains or will contain forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward- looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. BUA Foods Plc cautions readers that several factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company's disclosure materials filed from time to time with the Securities & Exchange Commission in Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.