BUA Foods Plc grew its total assets by 20 per cent to N1.67tn in the first half of 2026 despite recording a 16 per cent decline in revenue, as stronger profitability and an expanding equity base positioned the company to fund its long-term expansion plans.

The company disclosed this in a recent statement alongside its unaudited financial results for the six months ended June 30, 2026.

According to the statement, total assets increased from N1.39tn in the corresponding period of 2025 to N1.67tn, while total equity rose by 41 per cent to N1.01tn, providing what it described as a solid foundation to support strategic investments across its operations.

“BUA Foods maintained a strong financial position, with Total Assets increasing by 20 per cent to N1.67tn, while Total Equity rose by 41 per cent to N1.01tn, providing a solid platform to support the Company’s long-term strategic investments,” the statement read.

The company said the stronger balance sheet comes as it accelerates one of the largest expansion programmes in its history through investments in wheat milling, edible oils, noodles and integrated manufacturing operations aimed at strengthening domestic food production and supporting Nigeria’s food security.

Despite the expansion in its asset base, revenue fell to N765.12bn from N912.51bn in the first half of 2025, representing a 16 per cent decline, which the company attributed to moderated pricing across key product categories amid inflationary pressures.

However, the lower turnover did not prevent stronger earnings, as profit after tax rose by 12 per cent to N292.27bn from N260.10bn in the corresponding period of 2025.

Profit before tax also increased by 14 per cent to N314.90bn, while operating profit climbed by 13 per cent to N320.50bn, reflecting improved operational efficiency and disciplined cost management.

Managing Director of BUA Foods Plc, Ayodele Abioye, said the company’s performance demonstrated its resilience despite operating in a challenging business environment.

“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility. Our performance reflects effective cost management, ongoing improvements in supply chain execution, and a more optimised product portfolio mix,” he said.

Abioye added, “Despite a 16 per cent decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators. This outcome underscores the strength of our business model, the quality of execution across our operations, and our unwavering commitment to operational excellence.”

He said the company would focus on translating its operational gains into higher sales volumes during the second half of the year while maintaining profitability.

“Looking ahead to the second half of the year, our focus is on converting our operational gains into volume growth while sustaining the profitability improvements achieved in H1. We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders,” he added.

The statement showed that gross profit increased by seven per cent to N363.23bn, while gross profit margin improved to 47.5 per cent from 37.2 per cent a year earlier.

Operating profit margin also expanded to 42 per cent from 31 per cent, highlighting stronger returns driven by operational efficiency and tighter cost controls.

The company is investing in manufacturing capacity, new product categories, and production efficiency to strengthen its long-term growth and reinforce its position as one of Africa’s leading food manufacturers.

It added that the investments would deepen local food production, expand market presence and support sustainable earnings growth while contributing to Nigeria’s long-term food security objectives.