BUA Cement Plc 9M 2025 Results: Earnings and Market Expansion Drive Robust Profitability and Investor Optimism
BUA Cement Plc demonstrated operational resilience and growth momentum in the 9M 2025 period, consolidating its position as Nigeria’s second-largest cement producer and a formidable competitor to Dangote Cement. The company recorded a +47.19% year-on-year (Y-o-Y) growth in revenue to N858.73bn in 9M 2025 from N583.41bn in 9M 2024, driven primarily by higher sales volumes resulting from the commissioning of additional production lines in Sokoto and Edo States, as well as improved market penetration in Northern Nigeria. This performance reflects BUA Cement’s strategic focus on capacity expansion and backward integration, supported by efficient logistics and distribution networks that continue to reduce delivery bottlenecks. With a total installed capacity of 17 million metric tonnes per annum (MMTPA) and plans to expand beyond 20 MMTPA by 2027, BUA Cement is well-positioned to meet Nigeria’s growing housing and infrastructure demand.
Key Highlights in 9M 2025
BUA Cement’s gross profit increased by +137.41% to N429.26bn in 9M 2025 from N180.81bn in 9M 2025, reflecting effective cost management as cost of sales grew by +6.68%, below revenue growth. Finance income dipped by -32.15% to N9.94bn in 9M 2025 from N14.65bn in 9M 2024, while finance cost rose +75.12% on higher interest rates and new project financing.
Operating expenses rose by +50.21% to N64.89bn in 9M 2025 from N43.20bn in 9M 2024, driven by increases in administrative and selling costs. Nonetheless, the rise in operating income more than offset this increase. Consequently, profit before tax (PBT) rose by +448.29% from N61.75bn in 9M 2024 to N338.57bn in 9M 2025, while profit after tax grew by +491.91% to N289.86bn in 9M 2025 (vs N48.97bn in 9M 2024), highlighting the cement producer’s superior cost discipline and efficiency gains from new plant operations.
Total assets expanded by +4.47% from N1.56trn in 9M 2024 to N1.63trn in 9M 2025, while shareholders’ equity increased +66.17% to N608.98bn, supported by retained earnings growth of +162.76% (N396.13bn). Borrowings declined by -22.40% from N609.18bn in 9M 2024 to N472.75bn in 9M 2025 (see table 1 below).
Table 1:
Financial Ratios
BUA Cement’s gross margin improved to 49.99% (from 30.99% in 2024), indicating enhanced operational leverage, while the net profit margin climbed to 33.75%, reflecting the firm’s superior cost discipline and efficiency gains from new plant operations. Additionally, the return on equity rose to 47.60%, and the return on assets increased to 17.74%, signalling stronger profitability and asset utilisation.
The cement producer’s liquidity improved as the current and quick ratios increased from 0.81x in 9M 2024 to 1.05x in 9M 2025 and from 0.54x in 9M 2024 to 0.69x in 9M 2025, respectively, indicating better short-term solvency. Asset turnover ratio rose from 0.37x to 0.53x year-on-year in 9M 2025, signalling operational leverage. Despite rising finance costs (+75.12%), the company’s leverage ratio decreased to 0.78x, indicating a more conservative balance sheet (see table 2 below).
Table 2:
Valuation
BUA Cement’s price-to-earnings (P/E) ratio declined to 18.69x in 9M 2025 from 76.07x in 9M 2025, while the price-to-book (P/B) ratio fell from 10.16x to 8.90x over the same period, suggesting room for further price appreciation given the earnings momentum and growth prospects (see table 3 below).
Table 3:
Technical
BUA Cement’s share price showed volatility and strength throughout 2025, reflecting both investor sentiment and the broader market recovery in Nigeria’s equities market. With a 52-week range of N83.70 – N183.00, the stock began the year at around N93.00, maintaining a bullish rally in Q3 and reaching a peak at N183.00 in August 2025, supported by strong Q2 earnings releases and robust institutional demand. The price later stabilised around N160.00 as of September 30, 2025, representing a 72.04% year-to-date gain. This trend aligns with increasing investor confidence in the company’s fundamentals and strategic expansion. The sustained upward trend and stable consolidation around N160.00 suggest that BUA Cement has established a solid support level, with potential upside if Q4 performance maintains the growth trajectory (See chart 1 below).
Chart 1:
BUA Cement’s Strengths Relative to Peers in 9M 2025
BUA Cement’s net profit margin of 33.75% exceeds that of both Dangote Cement Plc (23.56%) and Lafarge Africa Plc (26.62%). This indicates that BUA Cement is retaining more profit per naira of revenue than its two major competitors, suggesting substantial cost control, pricing power or operational efficiency.
BUA Cement recorded a revenue increase of +47.19% and a net profit rise of +491.91%, outpacing Dangote Cement (+23.21% revenue growth; +166.31% net profit growth) and Lafarge (+62.77% revenue growth; +245.84% net profit growth). This establishes BUA as the fastest-growing company among Nigeria’s major cement producers. BUA Cement’s P/E ratio of 18.69x (compared to Dangote’s 3.64x and Lafarge’s 3.20x) indicates market recognition of this growth, while still allowing for potential further expansion should performance continue (See illustration 1 below).
Illustration 1:
Opinion
BUA Cement’s performance in 9M 2025 highlights a significant improvement in profitability, efficiency, and shareholder returns, driven by cost management and capacity-focused growth. Its ongoing expansion, emphasis on local sourcing, and strategic investments in cleaner energy sources (such as gas and alternative fuels) have bolstered its competitiveness and sustainability in an inflationary environment.
Analysts are in between a hold, buy, or sell recommendation for BUACEMENT, despite the cement maker’s operational efficiency, increasing demand, and disciplined cost control. However, its 9M 2025 performance supports a positive medium-term outlook, making BUA Cement an attractive investment for growth-focused investors seeking exposure to Nigeria’s booming infrastructure and construction industry.
Source: Proshare.co
