BUA Cement has reported a sharp rebound in profitability, with net income in the second quarter of 2025 rising more than 500 percent year-on-year, helped by strong revenue growth and easing cost pressures.
The company’s unaudited financials show that net profit rose to N99.77 billion in Q2, up from N16.28 billion a year earlier. That brought half-year profit to N180.9 billion, already more than double the N73.9 billion reported for the entire 2024.
Revenue also grew significantly, climbing to N289.5 billion in Q2, a 43 percent increase compared to the same quarter last year. In the first six months, sales hit N580.3 billion, up 60 percent from N363.9 billion recorded in H1 2024.
“This performance signals a strong recovery from last year’s FX-driven slump and shows how improved market conditions and internal efficiency gains can lift the bottom line,” a Lagos-based equities analyst said.
Read also: BUA Cement sees profit climbing to N250bn on lower FX losses
Cost moderation aids margin expansion
Despite the jump in revenue, BUA Cement kept cost growth relatively moderate. Cost of sales in the quarter under review rose just 3 percent to N142.2 billion, compared to N138.6 billion in Q2 2024.
That allowed gross profit to more than double to N147.3 billion, with gross margin improving to 51 percent in the quarter, from 32 percent a year earlier.
Energy costs remained the single largest cost item, accounting for over 50 percent of materials-related production expenses in the half year. But better cost control in operations, repairs, and distribution helped ease pressure.
Foreign exchange gains return after losses
One of the biggest swings in BUA’s earnings came from its foreign exchange exposure. The company reported a net FX gain of N782.8 million in H1 2025, compared to a N40 billion loss in the same period of 2024. This helped offset the N38.1 billion in finance costs recorded during the period, driven by higher interest on loans and bonds.
Pre-tax profit jumped to N214.8 billion in the half year, from N40.1 billion a year earlier. Net profit margin also improved from 9 percent in H1 2024 to 31 percent in H1 2025.
Stronger cash flows and leaner balance sheet
BUA Cement’s operations generated N150.2 billion in net cash in the first half, despite capital expenditure of about N16.4 billion and N62.5 billion in net financing outflows. Its cash balance more than doubled to N163.4 billion from N84.7 billion at the end of 2024.
The company also reduced its total borrowings to N477 billion, from N493 billion, helped by debt repayments and lower foreign exchange revaluation losses.
Read also: BUA Cement sees profit climbing to N250bn on lower FX losses
At its last Annual General Meeting, Abdul Samad Rabiu, chairman of the firm had projected that BUA Cement’s net income could rise to as much as N250 billion at the end of 2025 on reduced foreign exchange losses and improved production capacity.
BUA Cement’s latest results reflect not just a macroeconomic rebound — thanks to a relatively stable naira and fewer FX shocks — but also a stronger grip on internal cost control.
With half-year earnings already outperforming last year’s full-year figure, the company is on track for a record performance in 2025.
But analysts warn that risks remain. “The challenge going forward is how to sustain margins in the face of inflation, rising logistics costs, and market competition,” said another analyst. “BUA will need to double down on efficiency and possibly rethink pricing in the second half.”
Shares of BUA Cement closed at N135 on Friday. BUA Cement began the year with a share price of N93 and has since gained 45.2 percent on that price valuation, ranking it 70th on the NGX in terms of year-to-date performance.
Shareholders can be optimistic about BUACEMENT knowing the stock has accrued 27 percent over the past four-week period alone, making it 45th best on NGX.
