BUA Cement Plc has reported a remarkable performance for the nine months ended September 30, 2025, with profit after tax surging nearly fivefold to ₦289.9 billion, despite facing higher energy and financing costs.
The company’s latest unaudited results highlight its resilience and ability to manage costs effectively in a volatile macroeconomic environment, buoyed by foreign exchange gains, improved operational efficiency, and stable sales volumes.
Financial Performance (9M 2025 vs 9M 2024)
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Revenue: ₦858.7 billion — up 47.2% from ₦583.4 billion
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Gross Profit: ₦429.3 billion — up 137.4%
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Operating Profit: ₦365.6 billion — up 165.4%
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Profit Before Tax: ₦338.6 billion — up 448.3%
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Profit After Tax: ₦289.9 billion — up 492%
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Earnings Per Share: ₦8.56 (vs ₦1.45 in 9M 2024)
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Net Finance Cost: ₦46.1 billion (vs ₦17.4 billion)
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FX Gain/Loss: ₦21.6 billion gain (vs ₦57.4 billion loss in 2024)
The dramatic rebound was largely attributed to foreign exchange gains, tighter cost control, and stronger production efficiency, which offset the impact of rising energy and maintenance costs.
Q3 2025 Snapshot
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Revenue: ₦278.4 billion — up 26.9% year-on-year
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Profit After Tax: ₦109 billion — a massive 640% increase from ₦14.7 billion in Q3 2024
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Operating Profit: ₦120.2 billion (vs ₦55.9 billion in Q3 2024)
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Energy Costs: ₦35.5 billion — up 14.6% year-on-year
The third-quarter performance reflected higher pricing and efficiency gains across plants, helping offset inflationary pressures and elevated logistics expenses.
Operational Efficiency and Cost Management
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Cost of Sales: ₦429.5 billion — up only 6.7%, far below revenue growth
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Selling & Distribution: ₦47.5 billion — up 78%, driven by higher haulage costs
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Administrative Expenses: ₦17.4 billion — up 5.5%
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EBIT Margin: 42.6%, a sharp rise from 23.6% in 2024
Energy and raw materials continue to account for about 40% of total production costs, but process optimisation and logistics restructuring have helped maintain profitability.
Balance Sheet and Cash Flow Strength
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Total Assets: ₦1.63 trillion — up 4% from December 2024
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Cash & Bank Balances: ₦154.8 billion — nearly double from ₦84.7 billion
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Borrowings: ₦472.8 billion — slightly lower than ₦493.1 billion last year
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Net Cash from Operations: ₦221.1 billion (vs ₦405.3 billion in FY 2024)
Strong cash generation and moderate leverage continue to underpin the company’s financial stability.
Dividends and Shareholding
During the review period, BUA Cement paid ₦69.4 billion in dividends (₦2.05 per share), reaffirming its commitment to rewarding shareholders.
Ownership remains tightly held, with Abdul Samad Rabiu and BUA Industries Limited jointly controlling over 95% of issued shares.
FX Gains Drive Profit Turnaround
A key factor behind the earnings surge was a ₦21.6 billion foreign exchange gain, which reversed last year’s ₦57.4 billion loss. The stronger naira and reduced dollar obligations significantly improved margins and reduced net finance costs.
Management Outlook
“Despite persistent inflationary pressures on input costs, we remain focused on operational efficiency and cost optimization,” said Engr. Yusuf Binji, Managing Director/CEO of BUA Cement Plc.
“Our strategy is to sustain production efficiency, strengthen logistics, and continue supporting Nigeria’s infrastructure and housing sectors.”
Bottom Line
BUA Cement delivered one of its strongest nine-month performances on record, underscoring its ability to protect margins amid rising costs.
While FX gains and cost control drove the rebound more than volume growth, the company’s resilience and operational discipline position it well for sustained profitability heading into the final quarter of 2025.
(Source: BUA Cement Plc Q3 2025 Financial Statement)
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
