Nigerian billionaire Abdul Samad Rabiu's BUA Foods lifts half-year profit 12% to $210 million

BUA Foods lifted first-half profit 12.4% to ₦292.27 billion, about $210.3 million, after one of the sharpest margin improvements posted by any Nigerian manufacturer this year.

The company chaired by Abdul Samad Rabiu reported gross profit of ₦363.23 billion, or $261.3 million, on turnover of ₦765.12 billion for the six months to June 30. Turnover fell 16.2% from ₦912.51 billion, yet gross profit rose 7% and every measure below it improved.

The reason sits in the cost line. Raw material costs fell 33.1% to ₦355.59 billion from ₦531.31 billion, far outpacing the decline in sales. Gross margin widened to 47.5% from 37.2%, meaning the company retained close to half of every naira it took in, against just over a third a year earlier.

Pre-tax profit climbed 14% to ₦314.88 billion, roughly $226.5 million. Earnings per share reached ₦16.24 against ₦14.45.

The second quarter was stronger still. Gross margin reached 50.6%, and quarterly profit rose 13.8% to ₦149.82 billion, or $107.8 million, with earnings per share of ₦8.32 against ₦7.32.

Cost discipline reinforced the gain across the business. Administrative expenses fell 25.1% to ₦14.50 billion and selling and distribution costs dropped 14.6% to ₦30.44 billion, in a period when most Nigerian manufacturers were absorbing rising logistics and energy bills.

The balance sheet crossed a threshold. Total equity reached ₦1.006 trillion, about $723.5 million, up 41% from ₦713.44 billion at the start of the year, taking shareholders' funds past a trillion naira for the first time. Retained earnings stand at ₦997.65 billion. Total assets grew to ₦1.671 trillion, or $1.20 billion.

Debt has been coming down hard. BUA Foods repaid ₦88.64 billion, roughly $63.8 million, of principal during the half while drawing ₦56.52 billion, cutting total borrowings to ₦338.90 billion from ₦365.98 billion. Net debt fell 42% to ₦193.66 billion from ₦335.32 billion.

Finance costs followed. Interest and related charges dropped 40% to ₦6.14 billion, about $4.4 million, from ₦10.24 billion, an unusual direction of travel in a market where the central bank has held policy rates high through the period.

Cash generation funded all of it. Operations produced ₦162.18 billion, or $116.7 million, up 11.8% year on year. Cash and short-term deposits rose 165% to ₦149.52 billion from ₦56.36 billion, including ₦103 billion placed in short-term investments where the company held none at the start of the year. Net cash increased ₦114.50 billion over the half, against ₦3.97 billion in the same period of 2025.

Pasta was the standout product line, with revenue rising 34.7% to ₦130.57 billion from ₦96.93 billion. Fortified sugar contributed ₦258 billion and bakery flour ₦257.18 billion, the two largest lines in the portfolio. Maize generated ₦31.23 billion and wheat bran ₦18.07 billion.

Capital spending continued alongside the deleveraging. The group added ₦15.77 billion of property, plant and equipment in the half, with construction work in progress rising to ₦219.80 billion, indicating substantial capacity still being built out.

Rabiu's position is undiminished. He holds 8,172,601,967 shares directly, or 45.40% of the 18 billion in issue, with BUA Industries Limited holding a further 8,500,485,433, or 47.22%. Combined with small holdings through BUA Group and BUA International, his interest reaches 92.63%.

At the ₦939 closing price recorded in the filing, that stake is worth about ₦15.66 trillion, or $11.26 billion, against a market capitalisation of ₦16.90 trillion, roughly $12.16 billion.

Free float stands at 849,179,663 shares, valued at ₦797.38 billion, which keeps the company compliant with the exchange's requirements for main board listings. Kabiru Rabiu and Rabiu Abdulsamad Isyaku hold further positions, the latter at 2.63%.

BUA Foods listed on the Nigerian Exchange in January 2022 through a merger of Rabiu's sugar, flour, pasta, rice, edible oils and milling businesses, and became one of the largest listed companies in the country almost immediately.

The accounts were approved by the board on July 29 and signed by Rabiu as chairman alongside managing director Ayodele Abioye and acting chief financial officer Michael Ehimah. No interim dividend was declared, with the full ₦292.27 billion retained.