BUA Cement Plc has delivered a stellar financial performance in the first half of 2025, demonstrating significant growth across key metrics. The company’s unaudited financial results reveal a robust revenue surge of 59%, reaching N580.3 billion compared to N363.9 billion in the same period of 2024. This impressive top-line growth underscores the company’s strong market position and its ability to capitalize on market opportunities within the cement industry. Even more remarkable is the exponential growth in profit after tax, which soared by a staggering 428% to N180.9 billion, contrasting sharply with the N34.3 billion recorded in the first half of 2024. This remarkable profit leap reflects not only increased sales but also improved operational efficiencies and potentially favorable pricing dynamics.
Delving deeper into the quarterly performance, BUA Cement maintained its growth trajectory in the second quarter of 2025. Revenue for the quarter climbed by 43% to N289.5 billion, exceeding the N202.8 billion recorded in Q2 2024. Similarly, profit after tax for the quarter experienced an impressive 512% surge, reaching N99.8 billion compared to N16.3 billion in the same period last year. This consistent quarterly performance reinforces the sustainability of BUA Cement’s growth strategy and its ability to navigate market dynamics effectively. The company’s strong performance in both the first and second quarters highlights its resilience and adaptability, positioning it for continued success in the latter half of the year.
A key driver of BUA Cement’s profitability growth is the significant improvement in gross profit, which rose by an impressive 161.4% to N285.8 billion, up from N109.3 billion in the first half of 2024. This substantial increase is particularly noteworthy considering the 15.6% rise in the cost of sales, which reached N294.5 billion from N254.7 billion. This suggests that the company successfully implemented strategies to enhance cost efficiency and optimize pricing, thereby maximizing profitability despite rising input costs. Furthermore, the company’s robust operating profit, which tripled to N245.4 billion from N82 billion in the prior year, further underscores its operational effectiveness and strong financial management.
While BUA Cement’s financial performance showcases impressive growth, it is important to consider the company’s financial position and strategic decisions. The company’s balance sheet reveals a modest 2.5% increase in total assets, reaching N1.61 trillion by June 30, 2025, compared to N1.57 trillion at the end of December 2024. However, a more significant shift is observed in the company’s cash and short-term deposits, which surged by 83% to N163.4 billion from N89.3 billion. This substantial increase in liquidity suggests a conservative financial approach, potentially aimed at navigating market uncertainties and investing in future growth opportunities. Moreover, the company’s shareholders’ funds experienced a healthy growth of 30.7%, reaching N771.2 billion from N590.3 billion, primarily driven by retained earnings from improved profitability.
Furthermore, BUA Cement’s financial statement reveals some interesting trends related to its expenses and financing. Selling and distribution expenses saw a notable increase of 83% to N29.8 billion, up from N16.3 billion in the first half of 2024. This rise likely reflects increased marketing and logistics activities to support the company’s expanding operations and market reach. Administrative expenses, however, remained relatively stable, rising marginally by 3.6% to N11.6 billion. This suggests disciplined cost control within the administrative functions. A significant development is the substantial increase in finance costs, which ballooned by 249.5% to N38.1 billion from N10.9 billion. This surge can be attributed to the prevailing high-interest rate environment and potentially increased borrowings to finance expansion projects. Partially offsetting this was a rise in finance income to N6.8 billion from N2.6 billion.
Finally, BUA Cement’s financial report also highlights a positive shift in its foreign exchange position. The company reported a net exchange gain of N782.8 million, a significant improvement from the N40 billion loss recorded in the first half of 2024. This turnaround suggests improved foreign exchange risk management practices and potentially favorable movements in the naira-dollar exchange rate. Notably, despite the strong financial performance, BUA Cement did not declare an interim dividend for the period, contrasting with the N67.7 billion dividend paid out for the full year 2024. This decision likely reflects a strategic focus on reinvesting profits for further growth and expansion initiatives. Overall, BUA Cement’s half-year results paint a picture of robust financial health, strategic financial management, and a promising outlook for future growth.
