BUA Foods says it has implemented another price reduction for Q2 2025, citing enhanced operational efficiency and the stability of the global market.
Speaking during the company’s Q1 2025 earnings call on May 7, Managing Director Ayodele Abioye addressed questions about how BUA Foods will keep products affordable despite declining consumer purchasing power:
“We will continue to improve on our internal efficiency to be able to reduce the cost of product for customers, so that they will pay less and not be punished for inefficiencies.”
When asked about price increases, Abioye clarified that BUA Foods did not raise prices but instead implemented a reduction.
“In Q1 2025, we did not increase prices; we reduced them in response to the relatively stable macroeconomic environment.
We believe this stability will continue, allowing us to keep passing the benefits of our efficiency gains to our customers and consumers.
Even in Q2, we are continuing with price reductions, supported by a stable business climate and fewer fluctuations. Of course, we continue to monitor changes in the global economy, as they also influence how we respond.”
Abioye also revealed that the company is investing in innovation and affordable packaging options to sustain this pricing strategy.
“In Q1 2025, we deployed product packs that we believe would be affordable to consumers, and we are considering affordable packaging,” he added.
Abioye also hinted on the role of technology in driving the company’s internal efficiency, noting that BUA Foods is leveraging digital tools, including artificial intelligence, across its operations to streamline processes and reduce costs.
BUA Foods successfully reduced its finance costs by 75.13% to N3.7 billion in Q1 2025, representing an improvement from N15.1 billion in Q1 2024.
For the quarter, turnover reached N442.06 billion, reflecting a 23.85% year-on-year growth from N356.9 billion in Q1 2024.
In early April, BUA Foods announced a final dividend of N13.00 per ordinary share of 50 Kobo each.
The group confirmed that the final dividend, totaling N234 billion, pertains to the period ended December 31, 2024.