By: ThinkBusiness Africa
BUA Foods Plc, Nigeria’s largest food company by market capitalization, has reported a landmark pretax profit of N534.8 billion for the 2025 financial year, nearly doubling the N284.3 billion recorded in 2024.
The results, filed with the Nigerian Exchange (NGX) signal a major turning point for the consumer staples giant. While 2024 was defined by high inflationary pressure and exchange rate volatility, 2025 saw the company successfully translate revenue growth into massive gains, largely by stripping out the massive finance costs that previously plagued its balance sheet.
BUA Foods reported a steady 18.1% growth in revenue, which climbed to N1.80 trillion from N1.53 trillion the previous year. The company’s efficiency was evident in its gross profit, which rose 24.3% to N672.1 billion, while operating profit grew by 19.8% to settle at N565.3 billion.
The most striking aspect of the year’s financials was the 90.9% explosion in profit after tax, which soared to N507.7 billion compared to N266.0 billion in 2024.
In 2024, BUA Foods was hammered by N203.2 billion in finance costs, much of it tied to foreign exchange losses. In 2025, these costs plummeted to just N21.9 billion, a staggering 89% reduction.
This indicates that a more stable Naira allowed operating gains to flow directly to the bottom line rather than being consumed by debt servicing and currency devaluation.
While Sugar and Flour remain the company’s “cash cows” (each contributing roughly 42% of revenue), the Rice division saw an exponential surge. Building on a 2,900% growth rate seen in the first half of the year, the division’s expansion into the local value chain has begun to contribute significantly to the group’s diversified income.
Despite a 22% increase in the cost of raw materials and energy, BUA Foods maintained a strong Gross Margin of 37%. The company’s ability to pass on costs while increasing sales volumes suggests high brand loyalty and essential demand for its staples (Pasta, Flour, and Sugar).
The company’s total assets climbed to N1.38 trillion, a 26.5% increase from the previous year. Shareholders’ equity also saw a massive boost, rising to N702.7 billion, driven by a 65% jump in retained earnings.
“The results reflect our strong fundamentals, operational efficiency, and the resilience of our diversified business model. Amidst evolving macroeconomic dynamics, we remain focused on scale, affordability, and consistent value delivery to our customers and stakeholders,” said MD Ayodele Abioye in a statement accompanying the results.
With Earnings Per Share (EPS) jumping from N14.78 to N28.21, investors are eyeing a potentially record-breaking dividend payout. BUA Foods’ stock has already been a top performer on the NGX.
