Nigerian billionaire Abdul Samad Rabiu’s BUA Foods hits $215 million half-year profit

BUA Foods Plc, Nigeria’s largest consumer goods company controlled by Nigerian billionaire Abdul Samad Rabiu, reported stronger-than-expected earnings for the first half of 2026, posting a 12 percent increase in net profit as lower operating and financing costs helped cushion the impact of weaker sales amid softer consumer demand.

The food producer reported net income of N292.27 billion ($215 million) for the six months ended June 30, up from N260.07 billion ($191 million) a year earlier, according to unaudited financial statements filed with the Nigerian Exchange (NGX). Earnings per share rose to N16.24 ($0.012) from N14.45 ($0.011), reflecting the stronger bottom-line performance.

Profit rises despite revenue decline

Profit growth came even as revenue declined across the business. Total sales fell 16 percent to N765.12 billion ($562 million), compared with N912.51 billion ($671 million) in the same period last year, as spending remained subdued. The decline was most pronounced in the company’s core sugar business, where combined revenue from fortified and non-fortified sugar dropped 18 percent to N326.39 billion ($240 million).

Lower costs helped soften the impact of weaker sales. Cost of sales fell nearly 30 percent to N401.89 billion ($295 million), largely due to lower raw material expenses, while finance costs declined 40 percent to N6.14 billion ($4.5 million) from N10.24 billion ($7.5 million) after the company reduced its bank loan obligations. Those savings helped preserve profitability despite the slower pace of revenue growth.

The improved cost profile lifted operating profit by 12.5 percent to N320.52 billion ($235 million), compared with N284.82 billion ($209 million) in the first half of 2025. Second-quarter performance followed a similar pattern. Net profit rose nearly 14 percent to N149.82 billion ($110 million) from N131.69 billion ($96.5 million) a year earlier, although quarterly revenue declined 21 percent to N370.5 billion ($271.5 million).

BUA Foods’ assets climb to $1.22 billion

BUA Foods, which operates across sugar refining, flour milling, pasta production, rice processing and edible oils, continues to rely on its integrated manufacturing model to manage production and distribution. Its portfolio includes BUA Sugar Refinery, BUA Oil Mills, IRS Flour and IRS Pasta. Rabiu’s 92.64 percent ownership stake gives him effective control over the company’s strategic and capital allocation decisions.

The company’s financial position also strengthened during the period. Cash and short-term deposits increased to N149.52 billion ($110 million) as of June 30, from N56.36 billion ($41.3 million) at the end of December 2025, supported by higher short-term investments. Total assets climbed to N1.67 trillion ($1.22 billion), compared with N1.39 trillion ($1.01 billion) six months earlier, reflecting a stronger balance sheet despite weaker sales.