BUA Cement Plc has announced robust financial results for the first half of 2026, with its unaudited reports showing a pre-tax profit of N384.44 billion. This represents a substantial 79% increase from the N214.80 billion recorded in the corresponding period of 2025.
The company also saw its profit after tax climb to N324.88 billion from N180.90 billion, while earnings per share significantly improved to N9.59 from N5.34 in H1 2025.
Management Commentary
Yusuf Binji, the Managing Director/CEO of BUA Cement, commented on the strong performance, stating, “We have delivered a strong quarter despite the constraints encountered in May. Our strategic focus is firmly on new growth opportunities and cost-containing measures.” He expressed satisfaction with the progress of growth plans and the gains recorded during the quarter.
Binji attributed the strong performance to growth in the “new market” business segment, continued cost containment across operations, sustained fiscal discipline in the treasury function, and a stable foreign currency environment.
Financial Performance Breakdown
Revenue for H1 2026 reached N728.93 billion, marking a 25.61% year-on-year increase from N580.30 billion. This growth was supported by increased contributions from the company’s new market segment and enhanced operational efficiency.
Gross profit surged by 48.70% year-on-year to N427.03 billion, as revenue growth outpaced the increase in the cost of sales, which rose to N301.89 billion from N293.94 billion. This improvement in profitability reflects stronger gross margins and effective cost management.
Despite increases in overheads, with selling and distribution costs rising to N40.45 billion from N29.91 billion, and administrative expenses increasing to N15.83 billion from N12.21 billion, operating profit still improved by 10.34% to N271.31 billion from N245.39 billion in H1 2025.
Net finance costs declined significantly by 41.90% to N22.14 billion from N38.14 billion, primarily driven by lower interest expenses on borrowings. The company also recorded a foreign exchange gain of N16.57 billion, compared with a gain of N782.82 million in H1 2025.
Management noted that cost containment measures led to a 4.4% decline in direct cost per tonne year-on-year. The company’s Operating Ratio also improved, declining to 49.1% in H1 2026 from 57.9% in H1 2025, indicating enhanced operational efficiency. Return on Assets increased to 21.4% from 15.4%, and Return on Equity rose to 52.4% from 46.3% in the corresponding period.
Balance Sheet Strength
BUA Cement’s balance sheet remained robust, with total assets increasing to N1.92 trillion from N1.81 trillion at the end of 2025, representing a 6.2% increase. This growth was primarily driven by higher property, plant, and equipment, which increased to N1.22 trillion from N1.18 trillion, reflecting continued investment in production infrastructure.
Cash and short-term deposits also saw a significant increase, rising to N305.50 billion from N230.38 billion. On the funding side, total liabilities increased to N1.26 trillion from N1.20 trillion, largely due to higher non-current obligations.
Long-term borrowings grew to N487.58 billion from N313.07 billion, while short-term borrowings declined to N132.70 billion from N156.31 billion, easing short-term funding pressure. Shareholders’ equity remained broadly stable at N670.43 billion, compared with N672.90 billion at the end of 2025.
Market Reaction
Following the release of its H1 2026 results, BUA Cement Plc’s share price reacted positively, gaining 4.84% on the trading day after the announcement. This upward movement pushed the stock’s year-to-date (YTD) return to 82.0%.
The stock closed the latest trading session at N325 per share, giving the company a market capitalization of approximately N11.0 trillion, solidifying its position as one of the most valuable stocks on the Nigerian Exchange (NGX).
