…….Strong pricing, lower FX losses, and cost efficiency drive record-breaking quarter for Nigeria’s cement powerhouse.
BUACEMENT has kicked off 2025 with an exceptional performance, reporting an 80.5% year-on-year revenue growth in the first quarter—a clear sign of its operational transformation and pricing strength. The cement giant recorded a 3.5x surge in earnings per share to NGN2.40, supported by robust cost control and a 91.7% reduction in FX losses.
This marks a major turnaround for BUACEMENT, which had struggled with a high cost-to-sales ratio that peaked at 65.7% in 2024. Now, the company is reaping the benefits of major efficiency upgrades, including a strategic switch from heavy fuel oil to LNG at its Sokoto plant and the rollout of solid fuel at Obu. These moves, coupled with stabilizing energy prices, have driven a 20.2 percentage-point expansion in EBITDA margin to 45.1%.
Analysts have taken notice. Cordros Research revised BUACEMENT’s 2025 full-year earnings forecast sharply upwards—from NGN3.26 to NGN8.64 per share—and raised its target price by 47.2% to NGN75.87/s. Dividend prospects are equally strong, with an estimated NGN8.51 payout, translating to a 10.2% yield at the latest share price of NGN83.70.
Looking ahead, BUACEMENT is positioned to sustain momentum through 2025, with projected revenue growth of 40.6%, backed by rising cement prices and continued construction activity. Operational efficiencies are also expected to deepen, with the company’s cost-to-sales ratio forecast to drop to 53.7% this year and average 52% through 2029.
BUACEMENT’s Q1 results not only highlight its financial strength but also reflect a strategic reset that puts it firmly on the path of long-term, sustainable growth. With confidence returning, the company is no longer just cementing structures—it’s cementing investor trust.
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