In a remarkable turnaround, BUA Cement Plc has reported a 428.1% year-on-year growth in earnings in its H1 2025 unaudited results. This impressive performance is a testament to the company’s ability to navigate challenging market conditions and capitalize on opportunities for growth.
The company’s revenue surged by 59.4% year-on-year to N580.3 billion, driven by a combination of elevated pricing and volume growth. Notably, the cost of goods sold grew at a slower pace, increasing by 15.7% year-on-year, thanks to moderate increases in material and energy costs. This disciplined approach to cost management has enabled BUA Cement to maintain a healthy gross margin of 49.2%, up 19.2 percentage points year-on-year.
A significant factor contributing to the company’s strong performance is the positive swing in its foreign exchange position. BUA Cement recorded an FX gain of N783.8 million, a stark contrast to the FX loss of N40.0 billion in the prior year. This gain was enabled by the naira’s appreciation during the period, which benefited dollar-denominated liability balances.
The company’s bottom line has also benefited from tax incentives, which have helped to minimize the impact of the increased effective tax rate. The effective tax rate stood at 15.8%, and the company continues to enjoy a significant tax benefit, contributing to the 428.1% year-on-year growth in earnings per share (EPS).
Key Metrics:
- Revenue: N580.3 billion, up 59.4% year-on-year, driven by elevated pricing and volume growth. This significant increase in revenue demonstrates the company’s ability to drive sales and maintain market share.
- Gross Margin: 49.2%, up 19.2 percentage points year-on-year, driven by moderate increases in material and energy costs. This expansion in gross margin highlights the company’s ability to manage costs and maintain profitability.
- Net Profit Margin: 31.2%, up 27.6 percentage points year-on-year, driven by the company’s strong revenue growth and cost management. This significant increase in net profit margin demonstrates the company’s ability to translate revenue growth into profitability.
- Return on Average Equity (ROAE): 75.5.5%, up 58.5 percentage points year-on-year, indicating a significant improvement in the company’s return on equity. This metric suggests that the company is generating strong returns on its investments and is efficiently utilizing its equity.
The company’s strong performance is a reflection of its resilience and ability to adapt to changing market conditions. With its continued focus on operational efficiency and cost management, BUA Cement is well-positioned for future growth and poised to remain a leader in the Nigerian cement industry.
