After years of forex losses and currency swings, BUA Foods has staged a powerful comeback.
In the first half of 2025, the consumer goods giant more than doubled its profit, riding on resurgent demand, a stabilised naira, and a rare foreign exchange gain.
But while earnings soared to a six-year high, rising costs hint at tougher tests ahead.
In H1 2025, BUA Foods doubled its net profit to ₦260.1 billion from ₦130.9 billion a year earlier.
At the same time, it boosted revenue by 36% to ₦912.5 billion, thanks to increased sales in fortified sugar and bakery flour.
As a result, it raised earnings per share to ₦14.45 from ₦7.27.
Favourable Economic Conditions
Furthermore, a more stable naira—hovering around ₦1,550 to the dollar—and easing inflation, which dropped to 22.2% in June, helped improve business conditions.
After recording a ₦54.7 billion FX loss in 2024, BUA turned the tide and secured a ₦407 million gain in 2025 by reducing its exposure and navigating currency risks effectively.
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However, it still faced pressure from high interest rates, which pushed finance costs up 53% to ₦10.2 billion.
Costs Rise, Outlook Strong
Additionally, BUA Foods expanded its gross profit by 55% to ₦339.3 billion and lifted its operating profit by 41% to ₦284.8 billion.
It also improved its net margin to 28.5%, up from 19.5%.
Meanwhile, it nearly doubled its selling and distribution expenses to ₦35.6 billion as it ramped up logistics and marketing to meet demand.
The company strengthened its return on equity to 37.7% by growing earnings and increasing retained profits by 60%.
It also reduced borrowings by ₦72 billion, slashed its debt-to-equity ratio to 0.46x from 0.91x, and raised its cash reserves to ₦40.9 billion.
Although it generated ₦144 billion in operating cash flow—down from ₦288 billion last year—it maintained strong momentum.
Looking ahead, BUA Foods plans to sustain growth by tightening cost controls as demand remains firm and FX conditions improve.
