BUA Cement Plc reported a profit after tax of N356.04 billion in 2025, up 381.7 percent from N73.91 billion in 2024, as revenue, operating profit, and finance lines expanded during the period.
The cement manufacturer’s share price has risen this year by 22 percent year-to-date, as evidenced by Friday’s close at N219 per share. The stock price had reached a 52-week high of N178.5 as against a 52-week low of N93.
According to the unaudited financial statement of the cement manufacturer for the year ended 31 December 2025, revenue rose to N1.18 trillion from N876.47 billion, representing a 35 percent year-on-year increase, driven by volume growth and price changes in cement sold across its markets.
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The sale of bagged cement rose by 33.5 percent to N1.17 trillion, while the sale of bulk cement rose by 294 percent to N7.5 billion.
Cost of sales remained broadly flat at N575.3 billion, compared to N576.2 billion in 2024, despite the substantial increase in revenue.
As a result, gross profit more than doubled to N604.2 billion from N300.3 billion in the prior year. The improvement underscores stronger operating leverage and better absorption of fixed production costs.
A major driver of earnings recovery was the steep reduction in foreign exchange losses, which fell to N9.7 billion, compared to N92.1 billion in 2024.
The decline reflects improved currency exposure management and reduced volatility impact on the company’s financial position.
Operating profit rose to N504.6 billion, up from N144.3 billion in the prior year.
Although distribution and selling expenses increased to N63.6 billion and administrative expenses rose to N27.8 billion, largely reflecting inflationary pressures and expanded commercial activity, revenue growth significantly outpaced operating cost expansion.
On the balance sheet front, total assets increased to N1.86 trillion, up from N1.57 trillion in 2024.
The company’s cash and cash equivalents rose significantly to N280.4 billion, from N84.7 billion, reflecting strong operating cash generation during the year.
On the liabilities side, BUA Cement reduced its non-current bank borrowings to N313.1 billion from N444.8 billion and lowered outstanding non-current debt securities to N24.7 billion from N57.3 billion. The reduction signals deliberate deleveraging and improved capital structure management.
While current borrowings increased to N156.3 billion, the overall debt mix suggests refinancing and working capital adjustments rather than additional structural leverage.
Total equity expanded substantially to N672.9 billion, up from N388.5 billion, driven by strong retained earnings growth, which rose to N462.3 billion.
In a separate report, the company disclosed that a final dividend of N10.00 per ordinary share of 50 Kobo each, subject to appropriate withholding tax and shareholders’ approval, will be paid to shareholders whose names appear in the Register of Members as at the close of business on the 8th day of May 2026.
“On the 21st of May 2026, dividends will be paid electronically to shareholders whose names appear on the Register of Members as of 8th May 2026 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts,” it said.
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CEO comments
According to the BUA Cement earnings report, Yusuf Binji, managing director and chief executive officer, said, “This has been a remarkable year for us, both strategically and operationally, culminating in the strong financial performance shown.”
“At the start of the year, we outlined three key priorities: margin recovery, cost management and process improvement, and market penetration. Through process reviews and targeted realignments, we explored smarter ways of operating internally. This approach included close engagement with suppliers and service providers across the value chain, and I am pleased that the results are reflected in the improved margins reported,” he said.
He noted that BUA expanded its logistics capacity with 500 additional bulk cement tankers, resumed exports to Niger and Burkina Faso, and launched a 24-hour service centre to improve customer response time. Key expansion projects, including Ososo Line-1 and the Sokoto regasification plant, are progressing on schedule and are expected to lift installed capacity to 20 million tonnes per annum.
Outlook
Looking ahead to 2026, the company has disclosed that its strategy will centre on sustaining cost efficiency, expanding its footprint in local and regional markets, and advancing sustainability reporting in line with IFRS requirements.
The stronger cash position, lower long-term debt, and rising retained earnings place BUA Cement in a better position to fund capacity expansion and withstand cost pressures. Continued stability in foreign-exchange exposure, energy input optimisation, and effective utilisation of new capacity will be critical to maintaining the current earnings momentum.
