BUA Cement Plc reported a pre-tax profit of N556.70 billion for the nine months ended September 30, 2026, representing a 64.43% increase from N338.57 billion in the corresponding period of 2025.

The unaudited results also show that the nine-month revenue increased by 26.55% to N1.09 trillion, while profit after tax rose by 59.77% to N463.10 billion, supported by improved operating margins, lower finance costs and stronger finance income.

The performance came despite operational challenges, elevated energy costs, and disruptions linked to heavy rainfall.

Key Highlights

  • Revenue: N1.09 trillion (Up 26.55% YoY from N858.73 billion).
  • Gross profit: N620.27 billion (Up 44.19% YoY from N430.16 billion).
  • Operating profit: N536.51 billion (Up 46.73% YoY from N365.63 billion).
  • Pre-tax profit: N556.70 billion (Up 64.43% YoY from N338.57 billion).
  • Profit after tax: N463.10 billion (Up 59.77% YoY from N289.86 billion).
  • EPS: N13.68 (Up 59.77% YoY from approximately N8.56).
  • Finance costs: N35.52 billion (Down 36.68% YoY from N56.10 billion).
  • Total assets: N2.06 trillion (Up 10.84% from N1.86 trillion).
  • Cash and short-term deposits: N266.42 billion (Down 4.98% from N280.38 billion).

Management Commentary

Speaking on BUA Cement’s nine-month 2026 financial results, Managing Director/CEO, Yusuf Binji, said:

  • “I am delighted with our performance, which demonstrates resilience despite challenging conditions, particularly on account of the heavy rainfall and its impact on road infrastructure.”

He further highlighted the company’s logistics transformation:

  • “We surpassed our quarterly performances of 2025 through the addition of bulk customers, the acquisition of LNG trucks, and the further restructuring of our logistics operations.”

On energy costs and operational efficiency, Binji noted that the LNG trucks would reduce the company’s environmental footprint and improve market penetration. He also confirmed that energy costs, which were elevated during the quarter because of supply constraints, had since normalised.

Looking ahead, he stated:

  • “We remain committed to achieving our objectives through profitable partnerships with our distributors and sustained efforts to reduce our cost to serve.”

Driving the numbers

BUA Cement’s earnings growth was driven by higher cement sales, improved production margins, and reduced net financing costs.

  • Bagged cement revenue increased by 18.96% to N1.02 trillion from N857.05 billion, accounting for approximately 93.82% of total revenue.
  • Bulk cement revenue surged to N67.17 billion from N1.69 billion, representing growth of approximately 3,881.16%.

The sharp increase in bulk revenue supports management’s commentary on expanding its bulk customer base.

Despite revenue growth of 26.55%, cost of sales increased by only 8.84% to N466.45 billion, lifting gross profit by 44.19% to N620.27 billion.

Consequently, gross profit margin improved to 57.08% from 50.09%, while management reported that EBITDA margin increased by 6.3 percentage points to 52.7%.

Energy consumption remained a major cost pressure, increasing by 21.53% to N216.62 billion from N178.24 billion.

  • However, operation and maintenance service charges declined to N104.58 billion from N121.12 billion, helping moderate production expenses.

According to management, the improved margins were supported by lower operation and maintenance charges and cost savings associated with LNG-powered trucks.

  • The company also highlighted logistical disruptions caused by heavy rainfall and poor road infrastructure, alongside supply constraints affecting operations.

Selling and distribution expenses increased by 29.01% to N61.30 billion, while administrative expenses rose by 26.92% to N23.19 billion.

  • Nevertheless, operating profit expanded by 46.73% to N536.51 billion, reflecting improved profitability from core operations.

Finance costs declined by 36.68% to N35.52 billion, while finance income increased to N26.55 billion from N9.94 billion.

  • Consequently, net finance costs narrowed to N8.97 billion from N46.15 billion, providing additional support to earnings.

The company also recorded a net foreign exchange gain of N29.16 billion, compared with N21.63 billion in the corresponding period of 2025.

These movements lifted the pre-tax profit margin to 51.23% from 39.43%, although higher taxation moderated profit-after-tax growth.

The balance sheet

BUA Cement’s total assets increased by 10.84% to N2.06 trillion as of September 2026, from N1.86 trillion at December 2025, driven partly by growth in property, plant and equipment, which rose to N1.27 trillion from N1.18 trillion.

  • The expansion in the asset base also reflected increases in inventories, prepayments and other assets, and amounts due from related companies.

Meanwhile, management disclosed plans to expand installed cement production capacity from 17 million to 23 million metric tonnes annually through a proposed greenfield cement plant in Ososo, Edo State.

  • Cash and short-term deposits declined by 4.98% to N266.42 billion from N280.38 billion, while total external debt increased by 24.73% to N656.85 billion from N526.63 billion at December 2025.
  • On the cash flow, the company generated N304.54 billion in net operating cash flow during the period, while spending N127.50 billion on property, plant and equipment and paying N338.64 billion in dividends to shareholders.

Overall, the results reflect stronger profitability and operational efficiency despite higher energy expenses and increased borrowing obligations.

Market reaction

BUA Cement shares closed at N293.40 on October 29, 2026, unchanged from the preceding trading session.

The stock has gained 64.40% year-to-date from its opening price of N178.50, although it declined by 1.21% over the preceding week and 7.15% over three months.