BUA Cement Plc Records 368.58% YoY Growth in Pre-Tax Profit

BUA Cement Plc has released its unaudited financial results for the first quarter of 2025, ended March 31, 2025, showcasing an impressive 368.58% year-over-year (YoY) growth in pre-tax profit to N99.741 billion.

Additionally, the company’s net income witnessed a significant surge, with profit after tax increasing by 351.45% YoY to N81.124 billion. Notably, both the pre-tax profit and post-tax profit have exceeded the company’s full-year 2024 profit.

A review of the Q1 2025 financials reveals a combination of factors contributing to the impressive growth, including:

1. Strong Revenue Growth: Revenue rose by 80.49% YoY, driven by increased demand and improved pricing.

2. Improved Cost Efficiency: The cost of sales increased by only 31.35% YoY, resulting in a sharp rise in gross profit and a significant boost to the gross profit margin, which reached 47.61%.

3. Reduced Foreign Exchange Losses: The company’s foreign exchange losses decreased substantially from N10.055 billion in Q1 2024 to N837 million in Q1 2025, alleviating pressure from high finance costs and contributing to the strong profit growth.

The disparity between revenue growth and cost of sales increase led to a significant rise in gross profit, demonstrating improved operational leverage. The company’s ability to absorb the impact of rising operating expenses, thanks to strong revenue growth, enabled it to deliver higher operating profit, with the operating profit margin jumping by over 97% YoY to 40.44%.

BUA Cement’s total assets increased slightly to N1.58 trillion, representing a small growth of 0.58%. The company’s shareholders’ equity grew strongly to N469.67 billion, indicating a healthy balance sheet.

Despite the impressive financial results, BUA Cement’s share price has dropped by 10% since the start of the year, closing at N83.70 on April 24, 2025. The company remains the 7th most valuable company on the Nigerian Exchange, with a market value of N2.83 trillion.

The strong Q1 2025 results demonstrate BUA Cement’s ability to navigate challenging market conditions and deliver impressive growth. The company’s focus on operational efficiency, cost management, and strategic decision-making is expected to drive continued success in the future. As the cement industry continues to evolve, BUA Cement is well-positioned to maintain its market leadership and deliver value to its shareholders.