BUA Cement Plc reported its unaudited H1 2026 financial results, recording a profit before tax of N384.44 billion, representing a significant increase from N214.80 billion reported in the corresponding period of 2025.
Profit after tax also rose to N324.88 billion from N180.90 billion, while earnings per share increased to N9.59 from N5.34 in H1 2025.
Management commentary:
Speaking on the company’s performance, the Managing Director/CEO, Yusuf Binji, said:
- “We have delivered a strong quarter despite the constraints encountered. Our strategic focus is firmly on new growth opportunities and cost-containing measures. I am pleased with the traction of the growth plans and the gains recorded during the quarter.”
- “The strong performance was supported by growth in the “new market” business segment, continued cost containment across operations, sustained fiscal discipline in the treasury function, and a stable foreign currency environment.”
Key Highlights (H1 2026 vs. H1 2025)
- Revenue: N728.93 billion (Up 25.61% YoY from N580.30 billion)
- Gross profit: N427.03 billion (Up 49.12% YoY from N286.36 billion)
- Operating profit: N371.31 billion (Up 51.30% YoY from N245.39 billion)
- Net finance cost: N3.401 billion (Down 89.14% from N31.37 billion)
- Foreign exchange gain: N16.57 billion compared with N782.82 million gain in H1 2025.
- Total assets: N1.92 trillion (Up 2.64% from N1.86 trillion as of FY 2025)
- Cash and short-term deposits: N305.502 billion (Up 32.61% from N230.379 billion as of FY 2025).
- Total liabilities: N1.26 trillion (Up 4.64% from N1.204 trillion as of FY 2025)
- Total equity: N670.434 billion (Down 0.37% from N672.899 billion as of FY 2025)
Driving the numbers
The strong performance can be attributed to a combination of revenue growth, improved operating efficiency, and lower finance costs.
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The growth in revenue was supported by increased contribution from the company’s new market segment, alongside improved operational efficiency and cost management initiatives.
- Gross profit increased by 49.12% year-on-year to N427.03 billion, as revenue growth outpaced the increase in cost of sales. The cost of sales rose to N301.89 billion from N293.94 billion.
The improvement in profitability reflected stronger gross margins and better cost management.
On overheads, selling and distribution costs increased to N40.45 billion from N29.81 billion, while administrative expenses rose to N15.83 billion from N12.21 billion.
Despite these increases, operating profit improved to N371.27 billion; 51% higher than the reported numbers in H1 2025.
Still on the positive side, finance costs declined significantly during the period, supporting bottom-line growth.
- Net finance costs reduced to N3.408 billion from N31.373 billion, driven mainly by lower interest expenses on borrowings.
The company also recorded a foreign exchange gain of N16.57 billion compared with N782.82 million gains in H1 2025.
Management attributed the performance to growth in the new market business segment, continued cost containment, fiscal discipline in treasury operations, and a stable foreign currency environment.
Management noted also that cost containment measures resulted in a 4.4% decline in direct cost per tonne year-on-year, while the company’s Operating Ratio declined to 49.1% in H1 2026 from 57.9% in H1 2025.
Overall, the stronger operating performance translated into improved shareholder returns.
- Return on Assets increased to 21.4% from 15.4%, underpinned by higher margins and improved asset turnover.
- Return on Equity rose to 52.4% up from 37.8% in H1’2025.
Balance Sheet
The company’s balance sheet remained strong during the period, with total assets increasing to N1.92 trillion from N1.81 trillion at the end of 2025, representing a 6.2% increase.
The growth in asset base was driven by higher property, plant and equipment, stronger cash balances, etc.
- Property, plant and equipment increased to N1.22 trillion from N1.18 trillion, reflecting continued investment in production infrastructure.
- Cash and short-term deposits also increased significantly to N305.50 billion from N230.38 billion.
On the funding side, total liabilities increased to N1.26 trillion from N1.20 trillion, largely due to higher non-current obligations.
- Long-term borrowings increased to N487.58 billion from N313.07 billion. However, short-term borrowings declined to N132.70 billion from N156.31 billion, reducing short-term funding pressure.
Despite higher liabilities, shareholders’ equity remained broadly stable at N670.43 billion, compared with N672.90 billion at the end of 2025.
Market reaction
BUA Cement Plc’s share price reacted positively following the release of its H1 2026 results, gaining 4.84% on the trading day after the announcement.
The upward movement lifted the stock’s year-to-date (YTD) return to 82.0%, as investors responded positively to the company’s strong earnings growth and improved operational performance during the period.
The stock closed the latest trading session at N325 per share, giving the company a market capitalization of approximately N11.0 trillion, making it one of the most valuable stocks on the Nigerian Exchange (NGX).
Good achievements but price of cement should be reduced to enable masses build houses
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