BUA Foods Plc recorded a 16.15 percent year-on-year decline in revenue to N765.12 billion in the first half of 2026, as softer consumer demand and lower selling prices weighed on its sugar, flour and rice businesses.
The company’s revenue fell from N912.51 billion recorded in the corresponding period of 2025, with the decline concentrated in its three largest reporting segments. Sugar revenue dropped 18 percent to N327 billion, flour declined 27 percent to N276.2 billion, while rice revenue fell 20 percent to N31.3 billion.
Despite the top-line contraction, BUA Foods reported profit before tax of N314.88 billion and profit after tax of N292.27 billion, indicating that cost discipline and operating efficiencies helped cushion the impact of weaker sales.
The results highlight the growing pressure on consumer-facing food manufacturers as households adjust spending amid a price-sensitive operating environment.
The sugar division remained the company’s largest revenue contributor, accounting for 43 percent of group revenue, although its contribution declined from 44 percent a year earlier. Revenue from the segment fell from N398.1 billion in H1 2025 to N327 billion.
The flour business recorded a heavier decline, with revenue falling from N378.2 billion to N276.2 billion. Its contribution to group revenue consequently dropped to 36 percent from 41 percent.
BUA Foods attributed the decline principally to softer demand for flour products during the period.
The company’s pasta business provided the strongest counterweight to the weakness in its other major segments.
Pasta revenue rose 35 percent year-on-year to N130.6 billion from N96.9 billion, increasing its contribution to group revenue to 17 percent from 11 percent.
The company said higher sales volumes were driven by strong demand for its pasta products.
The division also recorded an improvement in gross profit margin, which increased to 43 percent from 37 percent in the corresponding period of 2025.
Rice remained the smallest contributor among the four reporting segments, accounting for four percent of group revenue. Its revenue declined to N31.3 billion from N39.3 billion, which the company attributed to strategic and competitive pricing initiatives.
Consumer demand remains key risk
Ayodele Abioye, managing director of BUA Foods, said the first half was characterised by market pressures, including weaker consumer demand and lower selling prices across key product categories.
He said the company had nevertheless delivered a resilient performance through operational excellence, disciplined cost management and the diversification of its product portfolio.
“As we enter the second half of the year, the Company remains focused on accelerating volume recovery, deepening market penetration, optimizing pricing, and sustaining the operating efficiencies that supported its earnings performance during the period,” Abioye said.
The company said it expects the operating environment to remain price-sensitive in the near term, placing greater emphasis on balancing market-share growth with sustainable pricing.
BUA Foods said it would continue to optimise its pricing strategy while seeking to remain competitive and protect long-term shareholder value. It added that the strength of its brands and customer loyalty remained important foundations for future growth.
The company also pointed to growing stakeholder confidence and continued diversification as part of its longer-term strategy.
With the first-half results, management is now prioritising volume recovery, deeper market penetration and operational efficiency as it navigates an environment in which consumers remain highly sensitive to prices.
The company’s ability to convert those measures into stronger volumes and sustainable margins will be critical to restoring top-line growth in the second half of 2026.
