BUA Cement Smashes Profit Records with 513% Surge, Hits ₦99.8bn PAT in H1 2025

 BUA Cement Plc has reported a staggering 512.7% year-on-year growth in profit after tax (PAT) for the first half of 2025, reaching ₦99.77 billion, as revealed in its unaudited Q2 financial results released on Friday, July 25.

The company’s earnings per share (EPS) for Q2 2025 stood at ₦2.95, up from ₦0.48 in the same quarter last year. This brings its H1 2025 EPS to ₦5.34, representing a dramatic leap from ₦1.01 in H1 2024. The impressive growth was driven by strong revenue performance and exceptional cost control measures.

Topline Growth on Solid Ground
Revenue rose by 42.7% year-on-year to ₦289.48 billion in Q2 2025, bringing total revenue for the half year to ₦580.30 billion — a 59.4% increase compared to the same period last year. Despite a modest 0.5% decline quarter-on-quarter, attributed to seasonal weather effects on sales volume, the topline performance remained resilient.

Cost Control Drives Margin Expansion
Gross margin expanded significantly by 19.58 percentage points to 53.8% in Q2 2025, buoyed by a mere 0.2% rise in cost of sales. This reflects effective cost management strategies, including reductions in energy costs (-17.7%), operations and maintenance charges (-53.6%), and manufacturing expenses (-35.5%).

Operating efficiency also improved sharply. EBITDA and EBIT margins rose to 47.9% and 43.6% respectively in Q2, up 20.58 and 19.75 percentage points year-on-year. This came despite a 23.7% rise in operating expenses to ₦17.55 billion, largely driven by a 26.8% increase in distribution costs, which made up over half of total OPEX.

FX Gains Ease Finance Costs
Net finance costs declined by 59.0% year-on-year to ₦11.96 billion in Q2 2025, aided by a foreign exchange gain of ₦1.62 billion, compared to an FX loss of ₦29.92 billion in Q2 2024. While interest expenses jumped by 213.5% to ₦18.81 billion and interest income dropped by 22.3%, the net impact of FX gains helped to cushion overall finance costs.

Bottom-Line Explosion
Profit before tax (PBT) soared by 510.7% to ₦115.06 billion, with PAT settling at ₦99.77 billion after a tax charge of ₦15.29 billion.

Outlook: Momentum Set to Continue
The Q2 results reflect BUA Cement’s continued momentum from the first quarter, supported by a favourable price-volume mix, operational efficiencies, and a stable macroeconomic environment.

With demand in the construction and infrastructure space expected to remain strong, the company appears well-positioned to sustain its growth trajectory through the second half of the year.

Industry analysts say BUA Cement’s performance sends a clear signal of strength in Nigeria’s manufacturing sector and reinforces investor confidence in the company’s long-term strategy.