Abdul Samad Rabiu’s BUA Foods plans new noodle, oil lines after $215 million half-year profit

BUA Foods Plc, Nigeria’s largest food producer controlled by billionaire businessman Abdul Samad Rabiu, plans to launch its new noodles and edible oils lines early next year, leaning on fresh capacity expansion to drive growth after posting record first-half profit.

The plans were outlined during the company’s H1 2026 Investors & Analysts Conference Call after the Lagos-based food giant posted a 12 percent increase in profit to N292.27 billion ($215 million) for the six months ended June 30, despite weaker revenue.

Management said the new projects, together with ongoing capacity expansion across its existing businesses, are expected to increase production, improve supply and reinforce the company’s position in Nigeria’s food market.

“Our ongoing expansion projects across our business divisions, including our entry into the noodles and edible oils segments, will begin coming on stream,” BUA Foods Managing Director Ayodele Abioye, said. “These investments will increase supply to meet rising consumer demand, support revenue growth and further strengthen our market leadership.”

Market expansion anchors growth strategy

Reiterating the priorities underpinning BUA Foods’ new phase of growth, Abioye said the company will focus on expanding production capacity, increasing market share, maintaining pricing discipline and protecting margins while investing for long-term growth.

He said the strategy builds on the growth roadmap outlined by the company’s chairman at the most recent annual general meeting. Years of investment in production capacity and product development have strengthened BUA Foods’ competitive position, he said, with the next phase of capacity expansion scheduled to commence next year.

Abioye said Nigeria’s food and fast-moving consumer goods market continues to present significant long-term opportunities, driven by population growth, urbanization and rising demand for affordable food products. “We remain confident in the industry’s long-term outlook and our ability to create value for shareholders,” he said.

Efficiency lifts first-half profitability

BUA Foods operates one of Africa’s largest food manufacturing businesses, producing sugar, flour, pasta, rice and edible oils. Its manufacturing network spans key locations across Nigeria, providing the scale needed to serve one of Africa’s biggest consumer markets while supporting future expansion.

The company reported revenue of N765.12 billion ($562 million) in the first half, down 16 percent from N912.51 billion ($670 million) a year earlier. Management attributed the decline mainly to lower average selling prices, softer demand for sugar and flour products and a more competitive pricing environment. Even so, lower production costs and improved operating efficiency helped lift profitability.

Profit after tax rose 12 percent to N292.27 billion ($215 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 12 percent to N325.45 billion ($240 million). Gross profit climbed 7 percent to N363.23 billion ($267 million), operating profit advanced 13 percent to N320.52 billion ($235.4 million), and profit before tax gained 14 percent to N314.88 billion ($231.3 million).

Pasta business underpins first-half growth 

BUA Foods’ margins also improved across the board. Gross margin rose to 47 percent from 37 percent a year earlier, operating margin increased to 42 percent from 31 percent, while profit-before-tax margin improved to 41 percent from 30 percent. Profit-after-tax margin strengthened to 38 percent from 29 percent, and EBITDA margin increased to 43 percent.

Management said the pasta business continued to outperform, with revenue rising 35 percent during the first half, helping offset weaker demand in the sugar and flour businesses. BUA Foods also strengthened its balance sheet during the period. Total assets increased 20 percent from the end of 2025 to N1.67 trillion ($1.22 billion), while shareholders’ equity climbed 41 percent to N1 trillion ($734.4 million). 

Management targets stronger second-half performance

Looking ahead, BUA Foods expects a stronger second half as it works to improve performance in its sugar and flour businesses, expand distribution across its product portfolio, maintain pricing discipline and preserve the cost savings achieved in the first six months of the year.

“As we enter the second half of the year, we remain optimistic about our prospects,” the management said. “Our priorities remain clear. We will strengthen our market position, improve operational efficiency, support growth across our businesses and continue delivering sustainable returns to our shareholders. The performance recorded in the first half gives us confidence as we move into the rest of the year.”