BUA Foods H1 2026 Profit Jumps 12% to N292bn as Margins Expand
BUA Foods Plc reported unaudited half-year 2026 results showing profit after tax of N292.27 billion, a 12% rise from N260.1 billion in H1 2025. Net profit margin expanded to 38.2% from 28.5%, meaning the company kept about N38 of every N100 revenue as profit versus N29 a year earlier. Revenue fell 16.15% to N765.12 billion from N912.51 billion, yet gross profit rose 7% to N363.23 billion, lifting gross margin to 47.5% from 37.2%. Operating profit margin climbed to 42% from 31%. The balance sheet shows total assets of N1.67 trillion and equity of N1.01 trillion, with equity funding 60.2% of assets versus 51.5% at end-2025 and an equity multiplier of 1.66 versus 1.94. Related-party receivables account for N1.02 trillion (61.2% of assets). Half-year average ROE is about 34%. Share price gained 92.5% in 2025, peaked at N967 in May 2026, then eased to N845.10 in July - still up 5.8% year-to-date. Dividend per share grew from N3.50 in 2021 to N28.00 in 2025, a ~68% CAGR. Management says the cost-driven margin expansion provides a stronger base for expansion projects in wheat-milling, edible oils, noodles and integrated manufacturing, aiming to make BUA Foods the sector's largest player by next year. Will the cost-driven margin expansion hold as the firm pursues its expansion plans, or should investors watch for a volume rebound in H2 2026 to sustain earnings growth?