BUA Cement Plc reported an 80% year-on-year increase in profit after tax for the first half of 2026, as disciplined cost management, improved operating efficiency and a more stable foreign exchange environment combined to strengthen earnings despite a challenging business climate.
According to the company’s unaudited financial statements for the six months ended June 30, 2026, profit after tax rose to N324.88 billion, from N180.85 billion recorded in the corresponding period of 2025. Revenue increased by 25.6% to N728.93 billion, compared with N580.30 billion a year earlier, while profit before tax climbed 79% to N384.44 billion.
The performance underscores BUA Cement’s ability to translate higher sales into stronger profitability, supported by effective cost control and improved operational efficiency.
A key driver of the results was slower growth in production costs relative to revenue. While turnover expanded by more than one-quarter, the cost of sales rose by just 2.7% to N301.89 billion, lifting gross profit by nearly 49% to N427.03 billion. As a result, the company’s gross profit margin improved significantly from about 49.3% in the first half of 2025 to 58.6%.
Bagged cement remained the company’s primary revenue source, contributing N688.77 billion, while bulk cement sales rose sharply to N40.15 billion, reflecting increased demand from large-scale infrastructure and industrial projects.
Operating profit advanced 51.3% to N371.27 billion, despite higher selling, distribution and administrative expenses associated with expanding market reach and business operations.
The company’s earnings also benefited from improved treasury management and favourable foreign exchange movements. BUA Cement reported a net foreign exchange gain of N16.57 billion, a sharp improvement from N782.8 million in the same period last year. Combined with stronger finance income, net finance costs declined significantly to N3.41 billion, compared with N31.37 billion in H1 2025.
Operational indicators also strengthened during the period. Earnings per share increased to N9.59 from N5.34, while return on equity and return on assets improved, reflecting stronger returns generated from shareholders’ funds and company assets.
Managing Director and Chief Executive Officer, Yusuf Binji, said the company remained focused on expanding into new markets while maintaining strict cost discipline through operational optimisation.
The company generated N278.45 billion in net cash from operating activities, providing financial flexibility to fund expansion. Capital expenditure exceeded N60.67 billion, with investments directed towards property, plant and equipment and projects under construction.
Total assets increased to N1.92 trillion as of June 30, 2026, while the company continued work on expanding installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes. Management said sustained investment in production capacity, operational efficiency and disciplined financial management positions the company for continued growth in the coming quarters as demand for cement remains supported by construction and infrastructure activities.
