HBM Nigeria reports N318 billion profit in H1 2026, declares interim dividend

HBM Nigeria Plc has released its unaudited H1 2026 results, reporting a pre-tax profit of N317.73 billion for the six months ended June 30, 2026.

This represents an increase of 59.08% from N199.74 billion reported in the corresponding period of 2025.

Q2 2026 profit stood at N168.61 billion, up 13.07% from N149.12 billion in the first quarter of 2026 and 33.16% higher than the N126.62 billion reported in the second quarter of 2025.

Following the performance, the company declared an interim dividend of N16 per ordinary share, subject to withholding tax.

The dividend will be paid electronically on Monday, August 17, 2026, to shareholders whose names appear in the register of members at the close of business on Wednesday, August 12, 2026.

Key Highlights (H1 2026 vs H1 2025)

Revenue: N678.41 billion (Up 31.23% YoY from N516.977 billion)
Gross profit: N421.815 billion (Up 42.62% YoY from N295.768 billion)
Operating profit: N290.94 billion (Up 51.32% YoY from N192.27 billion)
Profit after tax: N208,347 billion (Up 57.03% YoY from N132.677 billion)
Earnings per share: N12.93 (Up 56.92% YoY from N8.24)
Total assets: N1.306 trillion (Up 8.09% from N1.208 trillion as of December 2025)
Cash and cash equivalents: N330.642 trillion (Down 14.80% from N388.067 trillion as of December 2025)
Shareholders’ funds: N805.696 billion (Up 16.10% from N693.996 billion as of December 2025).

Driving the numbers

The impressive H1 2026 performance was driven by a combination of factors, including revenue growth that outpaced production costs, a sharp increase in net finance income, and stronger operating profitability.

The strong revenue growth was driven mainly by the cement business, which generated N661,538.144 million in the first half of 2026, up 31.16% from N504,362.785 million in the corresponding period. Cement accounted for 97.52% of total Group revenue.

Revenue from aggregates and concrete increased by 34.81% to N16,225.653 million from N12,036.400 million, contributing 2.39% of total revenue.

Other products generated N646.824 million, up 11.92%, but accounted for only 0.10% of Group revenue.

Production costs

Production costs increased by 16.00% to N256,595.346 million, at a slower pace than the 31.23% growth in revenue.

This supported a 42.62% increase in gross profit and improved the gross profit margin to 62.18% from 57.21% in the corresponding period of 2025.
Variable production costs remained the largest component of production expenses, rising 16.18% to N170.304 billion and accounting for 66.37% of total production costs.
Fixed production costs increased by 10.78% to N40.618 billion, while maintenance fixed costs rose by 10.26% to N23.889 billion.
Depreciation increased by 33.70% to N21.784 billion. This coincided with a 26.38% increase in property, plant and equipment to N566,893.524 million as of June 2026, from N448.580 billion at the end of December 2025.
On overheads, selling and distribution costs rose by 10.55% to N85.573 billion, while administrative expenses grew by 47.91% to N45.453 billion.

Despite the increase in operating expenses, operating profit rose by 51.32% to N290,943.663 million.

Another major boost to profit was finance income, which grew by 172.71% to N27.948 billion, driven primarily by interest income from short-term fixed deposits and current accounts, which rose to N27.007 billion from N7.18 billion

Net foreign exchange gains declined by 69.37% to N940.285 million.
Finance costs fell by 58.32% to N1.2 billion from N2.8 billion due to lower lease interest, bank charges and decline in total debt, including lease liabilities.

Consequently, net finance income increased to N26.79 billion from N7.47 billion, providing additional support to pre-tax profit and post-tax profit

Balance sheet

On the balance sheet, total assets grew by 8.09% to N1.31 trillion; driven largely by property, plant and equipment, which rose by 26.38% to N556.894 billion.

On the liabilities side, total liabilities declined by 2.72% to N500.037 billion, while total equity increased by 16.10% to N805.7 billion, supported by a 22.12% rise in retained earnings.