BUA Foods Plc reported a 24 per cent year-on-year revenue growth to ₦442.1bn in Q1 2025, but its Sugar division—traditionally its largest revenue contributor—saw its share fall to 48 per cent, down from 67 per cent in the same period last year.
The decline was driven by a significant drop in demand amid rising food inflation and weakened consumer purchasing power.
Sugar revenue fell 11 per cent to ₦211.3bn from ₦238.2bn in Q1 2024, while volume sold dropped by 24 per cent to 149,060 tons. Despite the decline, the segment remained the largest revenue contributor for the quarter.
The company’s overall revenue performance was boosted by sharp growth in other product lines. Flour revenue surged by 145 per cent to ₦176.2bn, Pasta increased by 12 per cent to ₦41.5bn, and Rice sales rose dramatically by 1617 per cent to ₦13.02bn, reflecting improved output and expanded market presence.
Gross profit rose 39 per cent to ₦160.91bn, with the gross margin improving by 406 basis points to 36.4 per cent, driven by increased pricing and operating efficiencies.
Cost of sales increased by 16 per cent to ₦281.16bn, mainly due to higher raw material and energy costs.
Operating profit rose by 33 per cent to ₦138.9bn, while the operating margin improved to 31.4 per cent, up from 29.3 per cent in the prior year.
Despite a 56 per cent rise in total operating expenses—largely from higher logistics and administrative costs—profit before tax climbed by 119 per cent to ₦136.4bn, buoyed by a 79.9 per cent reduction in finance expenses to ₦3.03bn.
Net profit more than doubled to ₦125.28bn, reflecting a 124 per cent increase, while earnings per share (EPS) grew by 125 per cent to ₦6.96 from ₦3.10 in Q1 2024.
On the balance sheet, total assets grew 4.3 per cent to ₦1.143trn, supported by increased trade activities and production capacity. Liabilities declined 11.7 per cent to ₦588.3bn, while equity rose 29.2 per cent to ₦554.34bn, bolstered by a 30 per cent increase in retained earnings.
Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said despite operating in a high-cost environment, the company’s proactive supply chain measures and improved internal efficiencies enabled it to sustain strong operational momentum.
“Revenue increased by 24 per cent, while Net Profit leaped by 124 per cent to N125bn further re-affirming our position as a leading food business on the Nigerian Exchange Limited. Our ongoing investments in production capacity, product/package innovation and route-to-market development continue to impact our results positively, enabling fulfilment of customer and consumer demand.
“As we look ahead, we remain focused on deepening our market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025,” he said.
