FRI APRIL 24 2026-theGBJournal| BUA Cement Plc has kicked off 2026 with a powerful earnings statement, underscoring its resilience and operational efficiency in a challenging macro environment.
The company’s first-quarter results reveal a sharp acceleration in profitability, driven by strategic pricing, disciplined cost control, and a significant turnaround in foreign exchange performance—positioning it as one of the standout performers in Nigeria’s industrial sector.
BUA Cement Plc (BUACEMENT) reported a 117.4% year-on-year surge in earnings per share to N5.21 in Q1-26 (Q1-25: N2.40). This impressive performance was underpinned by a 22.1% increase in revenue, supported largely by higher cement prices amid ongoing cost-recovery efforts, even as volumes likely moderated. Notably, ex-factory prices have now largely aligned with peer benchmarks.
Revenue growth was broad-based across segments. Bagged cement sales—accounting for 95.9% of total revenue—rose by 17.2% year-on-year, while bulk cement sales surged dramatically, increasing over 100-fold to contribute 4.1% of revenue.
This spike reflects the company’s strategic expansion into bulk distribution channels, particularly through tanker deliveries to contractors. On a quarter-on-quarter basis, revenue climbed 10.7%, signaling sustained demand momentum.
Profitability strengthened significantly, with gross margin expanding by 927 basis points to 56.9%, driven by a marginal 0.5% increase in cost of goods sold.
Cost efficiency was bolstered by relative exchange rate stability, a 9.9% decline in energy costs—thanks to a diversified fuel mix at the Obu plant—and a sharp 40.6% reduction in operations and maintenance expenses.
Operating performance followed a similar upward trajectory. EBITDA and EBIT margins rose to 53.9% and 50.6%, respectively, reflecting gains of 871bps and 964bps year-on-year. While operating expenses grew by 12.6%, largely due to increased distribution (+7.8%) and staff costs (+15.2%), strong revenue growth more than offset these pressures.
A key highlight of the quarter was the company’s swing to a net finance income of N13.18 billion, compared to a net finance cost of N18.63 billion in Q1-25.
This was driven by a surge in interest income, a reduction in borrowing costs, and a substantial net FX gain of N13.01 billion, reversing the prior year’s FX loss.
Ultimately, profit before tax rose by 93.2% to N192.68 billion, while profit after tax jumped 117.4% to N176.38 billion, despite a tax expense of N16.31 billion. The results reinforce BUA Cement’s strong earnings momentum and its ability to convert topline growth into substantial bottom-line gains.
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