BUA Cement Plc has reported a stunning pre-tax profit of N115.06 billion for the second quarter ended June 30, 2025, representing a staggering 510.65% increase compared to the N18.8 billion recorded in the same period last year.
This exceptional performance pushed the company’s half-year pre-tax profit to N214.8 billion—more than five times the N40.1 billion reported in H1 2024.
The surge in profitability was driven by a significant revenue boost, cost efficiency, and the elimination of exchange losses. In Q2 alone, revenue climbed to N289.4 billion, up 42.73% year-on-year, while half-year revenue rose to N580.3 billion—a 59.45% jump from N363.9 billion a year earlier. Cement remained BUA’s sole revenue stream, and the numbers underscore the company’s pricing strength and growing market footprint in Nigeria’s booming construction sector.
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Notably, the Nigerian cement industry—largely dominated by BUA Cement and Dangote Cement—has been a major driver of economic activity, mirroring the broader expansion in the real estate and construction sectors.
This momentum fed directly into the country’s GDP growth, with the National Bureau of Statistics (NBS) reporting a 3.3% expansion in the first half of 2025. Real estate and construction were key contributors to this growth, highlighting the critical role of infrastructure development in Nigeria’s post-COVID economic recovery.
Despite a slight uptick in the cost of sales, which rose 2.60% to N142.1 billion in Q2, BUA’s gross profit nearly doubled to N147.3 billion, up from N64.2 billion in Q2 2024. The increase in costs was largely attributed to energy prices, manufacturing expenses, and stock movement. However, improved margins more than compensated for these pressures.
Operating profit surged 160.64% year-on-year to N126.3 billion in Q2, even as selling and distribution expenses jumped 65.31% to N15.3 billion due to rising logistics and supply chain costs. Finance costs also grew sharply to N18.8 billion, driven by higher interest expenses. Yet, BUA posted a N1.6 billion foreign exchange gain—an important turnaround from the N29.9 billion loss recorded in Q2 2024, which had previously weighed down performance.
“I’ve only seen the current CBN governor maybe twice since his appointment. That’s because I don’t need him,” Abdul Samad Rabiu, the chairman of BUA Cement Plc, said while applauding Nigeria’s FX reforms. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive.”
The cement giant’s balance sheet remained strong. Total assets climbed to N1.6 trillion as of June 2025, up from N1.5 trillion in December 2024. Retained earnings rose 102.96% to N356.5 billion, reflecting the company’s robust earnings momentum and strengthening financial stability.
Investors responded positively to the earnings report. As of July 25, 2025, BUA Cement’s share price closed at N135 on the Nigerian Stock Exchange, marking a 45.16% year-to-date gain and cementing investor confidence in the company’s strategy and growth outlook.
The broader performance of Nigeria’s cement sector underscores the resilience of local producers, even amid persistent macroeconomic headwinds. With real estate developments, road projects, and public infrastructure continuing to drive cement demand, analysts expect the sector’s strong performance to persist through the second half of the year.
BUA Cement projects that its net income could rise to as much as N250 billion at the end of 2025 on reduced foreign exchange losses and improved production capacity, according to Rabiu, during the 9th Annual General Meeting of the company on Monday.`
For BUA Cement, the focus will likely shift toward managing growing distribution costs and optimizing expansion opportunities in a sector central to Nigeria’s economic narrative.
Rabiu confirmed that the company had no immediate plans to expand beyond its current 20 million metric tons capacity, following the recent commissioning of two additional cement lines in Sokoto and Edo States. He also reaffirmed BUA’s commitment to shareholder value, noting that a N2.05 dividend per share, representing a 94 percent payout ratio, would be distributed.