BUA Cement profit rises 79.6% to N324.9bn in first half of 2026

BUA Cement Plc has reported a 79.6 per cent increase in profit after tax to N324.9 billion for the first half of 2026, up from N180.9 billion recorded in the corresponding period of 2025.

The cement manufacturer, in its unaudited financial results, also recorded a 25.6 per cent growth in revenue, rising to N728.9 billion from N580.3 billion reported in the first half of 2025.

Profit before tax increased by 79 per cent to N384.4 billion, compared with N214.8 billion achieved a year earlier.

BUA Cement attributed the strong financial performance to growth in its new market segment, improved cost management, fiscal discipline, and a stable foreign exchange environment.

The company said its new market segment contributed significantly to revenue growth both year-on-year and compared with the preceding quarter.

It added that cost optimisation initiatives helped reduce direct cost per tonne by 4.4 per cent year-on-year and by 0.6 per cent between the first and second quarters of 2026.

The company’s operating ratio improved to 49.1 per cent in the first half of 2026, compared with 57.9 per cent recorded in the same period of 2025.

BUA Cement also reported improvements in key profitability indicators, with return on assets rising to 21.4 per cent from 15.4 per cent, while return on equity increased to 52.4 per cent from 37.8 per cent.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) margin increased to 54 per cent from 46.3 per cent during the review period.

Earnings per share also rose to N9.59, compared with N5.34 recorded in the first half of 2025.

The Managing Director and Chief Executive Officer of BUA Cement, Yusuf Binji, expressed satisfaction with the company’s performance despite prevailing operational challenges.

Binji said, “We have delivered a strong quarter despite the constraints encountered.

“As outlined in my April commentary, our strategic focus is firmly on new growth opportunities and cost containing measures.

“I am pleased with the traction of the growth plans and the gains recorded.”

He said the company would continue to prioritise initiatives aimed at improving operational efficiency.

“We will continue to prioritise measures aimed at driving operational efficiencies.

“Therefore, I expect current process optimisation activities will result in higher productivity and improved cost management, especially with the decisions taken during the quarter.

“I am very encouraged by our outlook and performance over the next quarters,” Binji said.