This is just as Zenith Bank posted a profit before tax of N1.9 Trillion within the same period.
The figure for BUA foods represents 104% jump from the N524.42 billion reported in the same period in 2023.
Its gross profit surged by 82%, hitting N333.82 billion compared to N183.78 billion in 2023.
This further consolidates the company’s standing in Nigeria’s food manufacturing industry.
Its profit after tax increased by 91% to hit N201.38 billion, rising from the N105.61 billion recorded during the period in 2023.
A key driver of this performance was a year-on-year increase of 73 percent in sugar sales to ₦544.4 billion, 160 percent in flour sales to ₦389.9 billion, and 131 percent in pasta sales to ₦134.8 billion.
However, operating expenses saw a 56% increase to ₦43.86 billion on the back of a rise in selling and distribution costs due to inflation.
BUA Foods’ strong financial performance positions it to achieve one of its 2025 strategic goals of becoming Nigeria’s biggest flour, and pasta milling company.
It has signed strategic agreements with Turkish and Italian firms to increase its pasta production capacity to 900, 000 metric tonnes per annum and flour to 2.5 million metric tonnes per annum.
Profit after tax equally grew by 91% from N434.2 billion to N827 billion in the same period.
The growth in the topline was driven by the expansion of both interest income and non-interest income. Interest income saw a notable 190% rise to N1.95 trillion, attributed to the high-yield environment.
Non-interest income rose by 41% to N856 billion, which was attributed to substantial growth in fees and commissions, which highlights the strength of Zenith Bank’s retail growth and the robust performance of its digital channels during the reporting period.
The robust increase in profitability reflects the Bank’s focus on operational efficiency and strong risk management practices.
Earnings per share (EPS) nearly doubled, rising to N26.34 from N13.82 in Q3 2023, underscoring Zenith Bank’s strong value creation for shareholders.
Also, total assets grew by 49% to N30.4 trillion, largely supported by customer deposits, which rose by 42% to N21.6 trillion.
Capital adequacy ratio remained strong, improving to 21.9%, well above regulatory requirements. The return on average equity (ROAE) stood at 37.8%, up from 35.1%, while return on average assets (ROAA) also improved to 4.3% as Zenith Bank maximized its asset base.
Cost of funds increased to 4.3%, reflecting the broader market trend of rising interest rates, while the cost of risk was maintained at 7.3%, underscoring the Bank’s proactive approach in provisioning for credit risk.
The Bank’s cost-to-income ratio rose to 39.5%, reflecting the impact of strategic investments in technology and capacity building aimed at supporting long-term growth, even as it continues to strive for greater operational efficiency.
Zenith Bank’s asset quality remains a cornerstone of its strength, with a non-performing loan (NPL) ratio of 4.5%, within regulatory limits. A high coverage ratio of 198.4% underscores the Bank’s disciplined approach to risk management, positioning it for resilience in the face of market volatility while supporting stable loan growth.
