BUA Foods Plc strengthened its financial position during the first half of 2026, growing its asset base and profitability despite reporting lower revenue, as the company continued investing in manufacturing capacity and long-term expansion across Nigeria's food industry.

According to the company's unaudited financial results for the six months ended June 30, 2026, total assets increased by 20% to ₦1.67 trillion, up from ₦1.39 trillion in the corresponding period of 2025. Total shareholders' equity climbed 41% to ₦1.01 trillion, reflecting stronger retained earnings and providing additional financial capacity to support future investments.

The improved balance sheet comes as BUA Foods accelerates one of its largest expansion programmes, with investments spanning wheat milling, edible oils, noodles, and integrated manufacturing facilities aimed at increasing domestic food production and strengthening Nigeria's food security.

Despite the stronger balance sheet, revenue declined 16% year over year to ₦765.12 billion, compared with ₦912.51 billion recorded during the same period in 2025.

The company attributed the decline primarily to moderated pricing across several major product categories as inflationary pressures continued to affect consumer demand and pricing strategies.

However, lower revenue did not prevent earnings growth.

Profit before tax increased 14% to ₦314.90 billion, while profit after tax rose 12% to ₦292.27 billion, up from ₦260.10 billion a year earlier.

Operating profit also improved 13% to ₦320.50 billion, highlighting stronger operational performance and tighter cost controls across the business.

Gross profit increased 7% to ₦363.23 billion, with the gross profit margin expanding to 47.5%, compared with 37.2% in the first half of 2025.

Operating profit margin also improved significantly, rising to 42% from 31% a year earlier, reflecting improved operational efficiency, disciplined cost management, and a more optimized product mix.

The stronger margins helped offset weaker revenue growth and contributed to higher overall earnings.

Managing Director Ayodele Abioye said the company's performance demonstrated resilience despite operating in a challenging economic environment.

According to Abioye, disciplined cost management, improvements across the supply chain, and a more efficient product portfolio enabled the company to expand margins while delivering double-digit growth in key earnings metrics.

He added that management's priority for the second half of the year will be converting operational improvements into higher sales volumes while maintaining profitability and expanding market share.

BUA Foods said it remains committed to increasing investment in manufacturing capacity, production efficiency, and new product categories as part of its long-term growth strategy.

The company believes these investments will strengthen domestic food production, expand its market presence, generate sustainable earnings growth, and reinforce its position as one of Africa's leading food manufacturers.

The expansion programme also aligns with broader efforts to improve Nigeria's food security through increased local production and reduced reliance on imports.

As BUA Foods continues to invest in capacity while maintaining strong profitability, investors will be watching whether higher production volumes and improving consumer demand can support a return to revenue growth during the second half of 2026.