BUA Cement has demonstrated remarkable profit recovery, with second-quarter 2025 net income surging over 500 per cent year-on-year, supported by robust revenue expansion and reduced cost pressures.
The company’s unaudited financial statements reveal that net profit climbed to N99.77 billion in Q2, compared to N16.28 billion in the corresponding prior period. This elevated half-year earnings to N180.9 billion, already more than double the N73.9 billion recorded for full-year 2024.
Revenue experienced substantial growth, reaching N289.5 billion in Q2, representing a 43 per cent increase versus the same quarter last year. First-half sales totalled N580.3 billion, up 60 per cent from the N363.9 billion recorded in H1 2024.
“This performance signals a strong recovery from last year’s FX-driven slump and shows how improved market conditions and internal efficiency gains can lift the bottom line,” a Lagos-based equities analyst said.
Despite revenue growth, BUA Cement maintained relatively controlled cost increases. Second-quarter cost of sales rose just 3 per cent to N142.2 billion, compared to N138.6 billion in Q2 2024.
This enabled gross profit to more than double to N147.3 billion, with gross margin improving to 51 per cent in the quarter, from 32 per cent annually.
Energy costs remained the largest single cost component, representing over 50 per cent of materials-related production expenses during the half-year. However, enhanced cost management in operations, repairs, and distribution helped alleviate pressure.
BUA’s earnings experienced significant improvement from foreign exchange exposure. The company recorded a net FX gain of N782.8 million in H1 2025, contrasting with a N40 billion loss during the same 2024 period. This helped offset the N38.1 billion in finance costs recorded during the period, driven by higher loan and bond interest.
Pre-tax profit surged to N214.8 billion in the half-year, from N40.1 billion annually. Net profit margin also improved from 9 per cent in H1 2024 to 31 per cent in H1 2025.
BUA Cement’s operations produced N150.2 billion in net cash during the first half, despite approximately N16.4 billion in capital expenditure and N62.5 billion in net financing outflows. Cash balances more than doubled to N163.4 billion from N84.7 billion at the 2024 year-end.
The company also decreased total borrowings to N477 billion from N493 billion, supported by debt payments and reduced foreign exchange revaluation losses.
During its recent Annual General Meeting, firm chairman Abdul Samad Rabiu projected BUA Cement’s net income could reach N250 billion by end-2025 through reduced foreign exchange losses and enhanced production capacity.
BUA Cement’s recent results demonstrate both macroeconomic recovery—benefiting from a relatively stable naira and fewer FX disruptions—and stronger internal cost management.
With half-year earnings already surpassing last year’s full-year performance, the company positions itself for record 2025 results.
However, analysts caution about remaining risks. “The challenge going forward is how to sustain margins in the face of inflation, rising logistics costs, and market competition,” said another analyst. “BUA will need to double down on efficiency and possibly rethink pricing in the second half.”
BUA Cement shares closed Friday at N135. Beginning the year at N93, the stock has gained 45.2 per cent, ranking 70th on the NGX for year-to-date performance.
Shareholders can remain optimistic about BUACEMENT, as the stock has accumulated 27 per cent over the past four weeks alone, making it the 45th best performer on NGX.
