Lower Finance Costs, Efficiency Spur BUA Foods Growth as Profit Surges

Nigeria’s largest consumer goods firm by market capitalisation, BUA Foods has once again delivered higher returns to shareholders as lower interest on loans as well as cost control measures contributed to the company’s profit growth.

The company that engages in the processing, manufacturing, and distribution of essential food products, including Sugar, Flour, Pasta, Rice, and Edible oils recorded 12.38 percent to N292.26 billion as at June 2026 from N260.06 billion as at June 2025.

The consumer goods giant benefitted from a reduction in finance costs on money borrowed as the central bank’s temporary pause on rate hike led to receding borrowing costs for firms. That is combined with the relative stability on the foreign exchange market which helped wipe out foreign exchange revaluation losses.

The key policy rates of the Central Bank of Nigeria (CBN) include the Monetary Policy Rate (MPR) at 26.50 percent, the Standing Lending Facility (SLF) around 27.00 percent, and the Standing Deposit Facility (SDF) at 22.00 percent.

Nigeria’s headline inflation rate stood at 15.91 percent in June 2026, dropping slightly from 15.93 percent in May.

The yield on Nigeria 10 year bond yield eased to 17.50 percent on July 28, 2026, marking a 0.06 percentage points decrease from the previous session. Over the past month, the yield has fallen by 0.05 points, though it remains 1.49 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity.

It is noteworthy that the company’s sourcing material locally and cost control measures put in place by its management have yielded fruit.

For instance, total cost of sales dipped by 70.11 percent to N401.88 billion in the period under review from N573.18 billion as at June 2025.

Administrative and distribution expenses were down 18.28 percent to N44.92 billion from N54.97 billion as at June 2025.

Despite a weak consumer purchasing power, revenue stood at N765.11 billion as at June 2026.

BUA Foods is growing its local rice production, wheat milling, edible oils, and entering the instant noodles market.

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