BUA Foods targets 50% capacity boost, ramps up job creation drive

BUA Foods Plc is intensifying its expansion strategy with plans to lift production capacity by more than 50 percent this year, positioning itself to capture a larger share of Nigeria’s fast-moving consumer goods market, while creating hundreds of jobs across its value chain.

Speaking during an investor call, Managing Director, BUA Foods, Mr Ayodele Abioye, said the company is pushing ahead with significant upgrades across its business divisions. According to him, the move will not only help meet rising demand but also support faster product development and innovation.

Abioye noted that the expansion drive is deliberate and geared toward strengthening market reach while boosting output levels, a strategy expected to underpin growth and profitability over the short to medium term.

The company is projecting double-digit growth in production volumes, backed by steady demand and expectations of a gradual recovery in consumer spending across its core product categories.

BUA Foods also identified improving macroeconomic conditions, including easing inflation, relative naira stability, FMCG sector expansion, and recent tax reforms, as key tailwinds. However, it remains cautious about risks such as volatile energy costs and weak consumer purchasing power, while continuing to limit its foreign exchange (FX) exposure.

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As part of its long-term strategy, the firm is advancing its backward integration programme in sugar production, aimed at strengthening supply security and improving cost efficiency, particularly amid global supply chain disruptions linked to geopolitical tensions, including the Middle East conflict.

On the potential impact of the crisis, Mr Abioye said the company has not recorded any material hit to earnings so far but is maintaining close engagement with supply partners to manage emerging risks.

He added that BUA Foods is actively navigating challenges around energy, logistics, FX, and affordability through targeted investments in efficiency, sourcing, and brand protection.

The company’s expansion push comes on the back of a strong financial performance in 2025, when it posted its highest earnings on record. Net profit more than doubled to N518.38 billion, according to its audited results.

Revenue climbed 16 percent to N1.77 trillion, driven by increased volumes across key staples such as sugar, flour, pasta, and rice, which have continued to see resilient demand despite pressure on household incomes.

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The strong performance has also supported a planned dividend payout of N28 per share, amounting to N504 billion, representing a 115 percent increase.

Looking ahead, Mr Abioye expressed optimism that moderating inflation, easing interest rates, and sustained profitability will drive improvements in consumer demand, cost flexibility, and margins.

He added that the company sees significant room for growth in volumes and market penetration, leveraging its brand strength, operational capacity, and distribution network.