BUA Cement Plc has reported a pre-tax profit of N384.44 billion for the first half of 2026, representing a 79% increase from N214.73 billion recorded in the same period of 2025. The impressive performance was driven by a significant surge in revenue, which rose by 72% to N1.16 trillion, compared to N674.32 billion in H1 2025.
Revenue Growth and Cost Pressures
The company's revenue growth was fueled by strong demand across its markets, with both volume and price increases contributing to the top-line expansion. However, the cost of sales also grew, rising by 68% to N611.48 billion from N363.97 billion, reflecting higher input costs and inflationary pressures. Despite this, gross profit climbed 76% to N548.52 billion, with gross margin slightly improving to 47.3% from 46.0%.
Other operating income more than doubled, reaching N34.26 billion from N15.79 billion, while selling and distribution expenses increased by 52% to N83.34 billion. Administrative expenses rose by 49% to N54.33 billion, indicating the company's continued investment in operational capacity and market expansion.
Finance Costs and Net Profit
Net finance costs surged by 63% to N60.67 billion, driven by higher interest expenses on borrowings. This increase was partly offset by a 66% rise in finance income to N15.43 billion. The effective tax rate declined slightly, with income tax expense growing at a slower pace of 67% to N77.74 billion, compared to the pre-tax profit growth.
Profit after tax for the period stood at N306.70 billion, up 82% from N168.03 billion in H1 2025. Earnings per share rose to N9.03 from N4.95, reflecting the strong bottom-line performance.
Balance Sheet and Cash Flow
BUA Cement's total assets increased to N4.12 trillion as of June 2026, up from N3.76 trillion at the end of 2025. Total liabilities rose to N2.51 trillion from N2.26 trillion, while shareholders' equity grew to N1.61 trillion from N1.50 trillion. The company's net cash from operating activities improved significantly, reaching N382.18 billion compared to N215.51 billion in the prior year, driven by higher receipts from customers.
Capital expenditure for the period was N112.45 billion, up from N88.21 billion, as the company continued to invest in capacity expansion and maintenance. The board of directors has not declared an interim dividend for the period.
Outlook and Market Position
BUA Cement remains one of Nigeria's leading cement producers, with a combined installed capacity of 11 million metric tons per annum. The company's performance in H1 2026 reflects its ability to navigate a challenging macroeconomic environment characterized by high inflation, currency volatility, and rising input costs. The management attributed the results to improved operational efficiency and robust demand from the construction sector.
According to the company's financial statements, the revenue growth was broad-based across all segments, with the Nigerian market accounting for the bulk of sales. The company continues to focus on cost optimization and capacity utilization to sustain profitability.
