BUA Foods posts $366m profit as Nigeria staples drive sales

BUA Foods Plc, the Lagos-based food giant controlled by Nigerian billionaire Abdul Samad Rabiu, capped its 2025 financial year with a sharp jump in earnings, reinforcing its position as one of Africa’s most profitable food manufacturers at a time when many producers are still grappling with inflation and currency pressure.

The company reported a profit of N507.7 billion ($366.6 million) for the nine months ended Dec. 31, 2025, according to its financial statement. That marked a significant increase from N266 billion ($192.7 million) recorded in the same period a year earlier. The improvement was supported by stronger sales across key product lines, including sugar, pasta and rice, alongside tighter control of production and distribution costs in a challenging operating environment.

Nigeria staples lift sales across categories

That earnings growth followed a steady rise in turnover. Revenue climbed to N1.8 trillion ($1.29 billion), up from N1.52 trillion ($1.1 billion) in 2024, reflecting higher demand for staple food products and expanded output. Bakery flour remained the largest contributor, with sales rising to N704.7 billion ($508.1 million) from N541.57 billion ($390.4 million) a year earlier.

Sugar also continued to play a central role in the group’s performance. Sales of fortified sugar totaled N571.4 billion ($411.9 million), while non-fortified sugar contributed N184.2 billion ($132.75 million). Pasta sales increased to N202.7 billion ($146.1 million), underscoring the growing role of packaged foods in Nigerian households.

Rice revenue recorded one of the sharpest increases, rising to N95.7 billion ($69 million) from N5.56 billion ($4 million) in the prior year. Wheat bran and maize generated N35.3 billion ($25.4 million) and N4.47 billion ($3.22 million), respectively.

Integrated food group boosts assets, equity

Behind the numbers is a vertically integrated structure that spans sugar refining, flour milling, pasta production, rice processing and edible oils. BUA Foods operates through businesses including BUA Sugar Refinery, BUA Oil Mills, IRS Flour, IRS Pasta and BUA Rice, giving the group control over large parts of its supply chain and helping to manage cost pressures.

The profit growth was also reflected on the balance sheet. Total assets rose to N1.38 trillion ($990 million) as of Dec. 31, 2025, from N1.095 trillion ($780 million) a year earlier. Retained earnings increased to N694.7 billion ($500 million), up from N421 billion ($300 million), while shareholders’ equity expanded to N702.8 billion ($507 million) from N429 billion ($309.5 million).

Ownership of the company remains tightly held. Abdul Samad Rabiu owns 92.63 percent of BUA Foods, while his son, Isyaku Naziru Rabiu, holds 1.62 percent, bringing the family’s combined stake to 94.25 percent—an arrangement that continues to shape the group’s long-term strategy and capital decisions.