BUA Foods Q1 2025: Six Highlights from a Record-Breaking Quarter

BUA Foods Plc has kicked off 2025 with an impressive financial performance, underlining its adaptability and growth momentum despite a high-cost operating environment. The food manufacturing giant reported a 124% year-on-year jump in profit after tax and double-digit growth across several key indicators in its unaudited first-quarter results for the period ending March 31, 2025.

Here are six key takeaways from the Q1 numbers:

1. Revenue Surges 24% to ₦442 Billion

Group revenue reached ₦442.1 billion, up from ₦356.9 billion in Q1 2024. Growth was led by a 145% increase in flour sales (₦176.2 billion), a 12% rise in pasta (₦41.5 billion), and a staggering 1617% increase in rice revenue (₦13.02 billion). However, sugar sales—the company’s largest revenue source—declined 11% to ₦211.3 billion, reflecting weaker demand.

2. Net Profit Leaps by 124% to ₦125 Billion

Profit after tax more than doubled to ₦125.28 billion, from ₦55.82 billion in the corresponding quarter of 2024. The significant earnings boost was supported by improved operating efficiencies, reduced finance costs, and the company’s ability to preserve margins despite rising input costs.

3. Earnings Per Share Doubled to ₦6.96

The sharp profit growth translated into strong shareholder returns, with earnings per share increasing by 125% to ₦6.96 (Q1 2024: ₦3.10). This reinforces BUA Foods’ profile as one of the most profitable companies listed on the Nigerian Exchange.

4. Operating Profit Climbs to ₦138.9 Billion

Operating profit grew by 33%, reaching ₦138.9 billion, up from ₦104.7 billion in Q1 2024. This growth came despite a 56% increase in total operating expenses, driven by higher logistics and administrative costs. The operating profit margin improved by 209 basis points to 31.4%.

5. Rice Division Takes Off with 1617% Revenue Growth

Previously a marginal contributor, BUA’s rice business came into its own in Q1 2025. Revenue surged to ₦13.02 billion from just ₦780 million a year earlier, driven by a production increase to 11,131 tons from 765 tons. This signals the success of the company’s investment in production capacity and product diversification.

6. Balance Sheet Strengthens: Equity Up, Liabilities Down

Total equity increased by 29.2% to ₦554.34 billion, supported by strong retained earnings growth. Meanwhile, liabilities fell by 11.7% to ₦588.3 billion, indicating improved financial health. Total assets climbed to ₦1.14 trillion, a 4.3% rise from FY 2024.

BUA Foods’ Managing Director, Engr. (Dr.) Ayodele Abioye, attributed the strong performance to strategic investments, operational discipline, and the resilience of the business model. “With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth,” he said.

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