Prime Business Africa
BUA Foods failed to replicate the N912.51 billion revenue generated in the first half of 2025, as the company earned N765.11 billion in turnover in the corresponding period in 2026.
Analysis of the company’s unaudited half-year financials for the period ended June 30, 2026, showed that BUA Foods offset the 16 percent decline in topline by reducing cost of sales by 30 percent year-on-year.
BUA Foods expended N401.88 billion on cost of sales between the first quarter (Q1) and the second quarter (Q2) of this year, below the N573.18 billion sustained in the same period in 2025.
Join our WhatsApp ChannelThis resulted in a 7 percent growth in gross profit, which increased to N363.23 billion in H1 2026, surpassing the N339.33 billion recorded in the first half of last year.
The company also cut selling and distribution expenses by 15 percent, after incurring N30.43 billion during the period under review, down from N35.62 billion expended in the first six months of 2025.
Similarly, administrative expenses dropped to N14.49 billion in the first half of 2026, compared to the N19.35 billion incurred in H1 2025, representing a 25 percent decline.
This contributed to total operating expenses declining by 18 percent to N44.93 billion between January and June of this year, from the N54.98 billion sustained by BUA Foods in the corresponding period of 2025.
The company supported its bottom line with 367 percent year-on-year growth in other income — which covers earnings from scrap, foreign exchange gain and other non-core businesses.
Other income, according to the financials, increased significantly from N476.41 million recorded in the first six months of last year to N2.22 billion in H1 2026.
This bolstered operating profit, which grew to N320.52 billion in the first half of this year, up by 13 percent when compared to the N284.82 billion reached in the same period in 2025.
Also, net finance cost declined to N5.63 billion between the first quarter and the second quarter of 2026, above the N9.12 billion recorded in H1 2025.
The 38 percent decline in net finance cost supported the company’s profit before tax (PBT), which grew by 14 percent year-on-year, from N276.10 billion to N314.88 billion.
Income tax went up 41 percent during the period under review, soaring from N16.03 billion filed in H1 2025 to N22.61 billion in the first half of this year.
Additionally, profit after tax (PAT) rose to N292.26 billion in H1 2026, exceeding the N260.06 billion reported in H1 2025, reflecting a 12 percent growth.
Meanwhile, Abdul Samad Rabiu’s investment in the Nigerian stock market rises to N24.11 trillion in the first quarter (Q1) of 2026 — despite a N15 billion loss in BUA Foods.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
