FRI JULY 24 2026-theGBJournal| BUA Cement Plc delivered a sharp increase in second-quarter earnings, as robust pricing, stronger cement sales and improved operating efficiency offset persistent cost pressures, reinforcing the company’s earnings momentum in the first half of 2026.
The cement producer on Thursday reported a 48.8% year-on-year increase in earnings per share (EPS) to N4.39 for the three months ended June 2026, up from N2.95 a year earlier. First-half EPS climbed to N9.59, compared with N5.34 in the corresponding period of 2025.
The stronger performance was driven by a 29.2% year-on-year rise in second-quarter revenue, alongside a 642-basis-point expansion in EBITDA margin to 54.3%.
Profitability also benefited from a net foreign exchange gain of NGN3.56 billion, more than double the NGN1.62 billion recorded in the same quarter last year.
Revenue growth reflected a combination of sustained price increases and improved sales volumes, with second-quarter turnover advancing 29.2% year-on-year, extending the company’s strong first-half performance, where revenue rose 25.6% from a year earlier.
The results underscore continued resilience in domestic cement demand despite a challenging macroeconomic environment.
Gross margin expanded by 922bps y/y to 60.2% (H1-26: +924bps y/y to 58.6%), as revenue growth outpaced cost of sales growth (+4.9% y/y).
The modest growth in cost reflects higher energy costs (+29.2% y/y), which outweighed gains from relative exchange rate stability and a sustained reduction in operations and maintenance service charges (+8.2% y/y).
Meanwhile, EBITDA and EBIT margins expanded by 642bps and 763bps y/y to 54.3% and 51.3%, respectively, in Q2-26 (H1-26: +758bps and +865bps y/y to 54.1% and 50.9%).
The expansion held despite a 57.5% y/y increase in operating expenses. The expansion in OPEX was driven by an 83.9% y/y rise in distribution costs, which accounted for 62.8% of total OPEX.
The company also reported a steep drop in net finance cost to NGN8.79 million in Q2-26 (Q2-25: net finance cost of N11.96 billion), supported by a decline in interest expense (-41.4% y/y), higher interest income (+42.3% y/y), and a net FX gain of N3.56 billion (vs net FX gain of N1.62 billion in Q2-25).
For H1-26, this translates to a net finance income of N13.17 billion (H1-25: net finance cost of N30.59 billion).
Overall, profit before tax (PBT) increased by 66.7% y/y to N191.75 billion, while profit after tax (PAT) rose by 48.8% y/y to N148.50 billion, following a tax expense of N43.25 billion.
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