BUA Foods Plc has recorded a profit after tax of N142.32 billion for the first quarter ended March 31, 2026.

This represented a 14 per cent increase from N125.28 billion recorded in the corresponding period of 2025.

The company disclosed this in a statement on Wednesday in Lagos, along with its unaudited financial results.

According to the statement, the growth is driven by cost discipline, operational efficiency and value-driven execution.

Revenue for the period, however, declined by 11 per cent to N394.6 billion from N442.1 billion in the first quarter of 2025.

This is due to moderated pricing following easing inflationary pressures and a more stable foreign exchange environment.

Gross profit rose by nine per cent to N175.65 billion, supported by reduced input costs and improved efficiency across business divisions. Operating profit grew by 11 per cent to N154.6 billion from N138.9 billion in the same period of 2025, while operating profit margin improved to 39 per cent from 31 per cent.

Earnings per share increased by 14 per cent to N7.91, reinforcing value creation for shareholders, while total assets rose by 12 per cent to N1.555 trillion, driven by capacity expansion.

An analysis of segment performance showed that flour contributed 35 per cent to revenue in the first quarter of the year, down from 40 per cent in the same period of 2025, while sugar accounted for 43 per cent, compared to 48 per cent previously.

The decline in revenue across both segments was attributed to strategic pricing adjustments aligned with market conditions.

Pasta recorded significant growth, contributing 18 per cent to revenue, up from nine per cent in the first quarter of 2025.

Revenue from the segment surged by 70 per cent to N70.6 billion, driven by strong consumer demand.

Rice contributed four per cent to total revenue, rising from three per cent in the previous year, with revenue increasing to N14.9 billion due to steady milling operations.

Its managing director, Mr Ayodele Abioye, said, “BUA Foods delivered resilient earnings in the first quarter of 2026, underpinned by strong margin performance despite a challenging operating environment. Profit after tax increased by 14 per cent year‑on‑year to N142.32 billion, notwithstanding an 11 per cent decline in revenue and modest volume growth.

“EBITDA rose by 11 per cent to N157.13 billion, reflecting effective cost containment, pricing discipline, and sustained margin expansion across core product portfolios.

“Looking ahead, while geopolitical risks continue to impact energy markets and global supply chains, the business remains well-positioned for growth. This is supported by a resilient operating model and disciplined execution. BUA Foods is focused on delivering sustainable, long‑term value for investors, shareholders, and other stakeholders.”

(NAN)