BUA Foods Achieves Record N508 Billion Profit Driven by Increased Sales and Cost Management

BUA Foods announced a remarkable 90.9 percent increase in its after-tax profit for 2025, setting a new record with earnings reaching N508 billion. This surge in profit follows a significant hike in revenue and a decrease in cost pressures.

The company's revenue escalated to N1.8 trillion, up from N1.5 trillion the previous year, as reported in its unaudited financial statement released on Thursday. This growth was notably driven by a strong demand in its bakery flour products.

The notable profit increase was also supported by effective cost management strategies that mitigated financial pressures on the company's profit margins.

A key factor was the significant reduction in finance costs, which decreased to N21.9 billion from N203.2 billion, arising from a more stable foreign exchange environment throughout 2025. This contrasts sharply with the N173.3 billion loss attributed to foreign exchange fluctuations in the preceding year.

Additionally, the net finance income, which considers costs related to financing, dropped by 92.3 percent to N14.4 billion.

“Profitability improved significantly during the year, with Profit After Tax rising by 91% and EBITDA hitting ₦575 billion. This reflects ongoing operational efficiencies, margin expansion, and prudent cost management,” stated Managing Director Ayodele Abioye in a related announcement.

Looking forward, BUA Foods intends to maintain its focus on preserving profit margins amid a competitive market while continuing its expansion in business ventures. The company, currently valued at N14.4 trillion, had previously revealed its plans to expand its pasta production facilities, introducing nine new long-cut pasta lines to double its yearly output.

Further, it has plans for capacity enhancements within its flour division through the establishment of four state-of-the-art wheat milling facilities.

The profit before tax surged to N534.9 billion from N284.3 billion, while profit after tax increased from N266 billion to N507.7 billion. The company’s net profit margin improved to 28.1 percent, rising from 17.4 percent.