…Revenue came in at 42.7% y/y to N289.48 billion
…Gross margin expanded by 19.58ppts to 53.8%
MON JULY 28 2025-theGBJournal| BUA Cement Plc’s (BUACEMENT) reported revenue surge of 43 percent to N289.5 billion in Q2-2025, carrying over its Q1-25 momentum amid significant margin expansion, and disciplined cost control.
The Cement maker’s standalone EPS stood at N2.95 (+512.7% y/y), bringing the H1-25 EPS to N5.34 (H1-24: N1.01), reflecting a favourable price-volume mix, coupled with only a marginal 0.2% y/y rise in cost of sales (ex-depreciation).
BUACEMENT’s revenue came in at 42.7% y/y to N289.48 billion in Q2-25 (H1-25: +59.4% y/y to N580.30 billion), driven by both price and volume gains relative to the same period last year.
However, revenue fell slightly by 0.5% quarter-on-quarter, likely due to seasonally lower sales volumes during the rainy season.
Gross margin expanded by 19.58ppts to 53.8% (H1-25: +19.28ppts to 52.2%), supported by minimal cost growth (+0.2% y/y).
The lower growth in costs reflects the impact of exchange rate stability and effective cost reduction strategies, which led to decreases in energy costs (-17.7% y/y), operations and maintenance service charges (-53.6% y/y), and manufacturing expenses (-35.5% y/y).
Sequentially, EBITDA and EBIT margins also saw a strong increase, rising by 20.58ppts and 19.75ppts to 47.9% and 43.6%, respectively, in Q2-25 (H1-25: +20.28 ppts y/y and +19.77 ppts y/y to 46.5% and 42.3%, respectively).
This was achieved despite a 23.7% y/y increase in operating expenses (ex-depreciation) to N17.55 billion, driven primarily by a 26.8% y/y rise in distribution costs, which accounted for 53.1% of total OPEX.
At the same time, net finance costs declined by 59.0% y/y to N11.96 billion, supported by FX-related gains of N1.62 billion in Q2-25 (vs. FX loss of N29.92 billion in Q2-24).
This helped offset a 22.3% y/y decline in interest income and a 213.5% y/y increase in interest expense to N18.81 billion.
For H1-25, net finance costs declined by 25.5% y/y to N30.59 billion.
Overall, BUACEMENT’s profit before tax (PBT) soared by 510.7% y/y to N115.06 billion, while profit after tax (PAT) rose by 512.7% y/y to N99.77 billion, after accounting for a tax charge of N15.29 billion.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
