BUA Cement Plc grew its profit after tax by 59.8 percent to N463.1 billion in the first nine months of 2026, as stronger cement sales, improved operating efficiency and lower financing costs boosted earnings despite rising energy expenses and challenging distribution conditions.
The cement manufacturer’s unaudited financial statements for the nine months ended September 2026 show that profit after tax increased from N289.86 billion in the corresponding period of 2025, while revenue rose by 26.5 percent to N1.09 trillion from N858.73 billion.
The earnings growth outpaced revenue expansion, reflecting the company’s ability to convert higher sales into stronger profits through improved cost management and operational efficiencies.
Profit before tax increased by 64.4 percent to N556.70 billion from N338.57 billion, while operating profit rose by 46.7 percent to N536.51 billion from N365.63 billion.
The improvement came as cost of sales increased by a relatively slower 8.8 percent to N466.45 billion from N428.57 billion, allowing gross profit to expand by 44.2 percent to N620.27 billion.
Consequently, gross profit margin improved to 57.1 percent from 50.1 percent in the corresponding period of 2025, highlighting the impact of lower production-related costs relative to revenue.
BUA Cement attributed the performance to operational efficiencies, lower operation and maintenance service charges and savings from the introduction of liquefied natural gas-powered trucks.
The company also recorded three consecutive quarters of volume growth compared with the corresponding periods of 2025, despite heavy rainfall and poor road conditions that affected distribution.
Yusuf Binji, managing director and chief executive officer, said the company surpassed its quarterly performances in 2025 through the addition of bulk customers, acquisition of LNG trucks and further restructuring of its logistics operations.
‘The LNG trucks are eco-friendly, thus reducing our carbon footprint on the environment while harnessing the country’s abundant gas reserves,’ Binji said.
He added that the investment would enhance market penetration and operational efficiency, while energy costs, which were elevated during the quarter because of supply constraints, had since normalised.
A major contributor to BUA Cement’s revenue expansion was the sharp increase in bulk cement sales, signalling a growing contribution from this distribution channel.
Revenue from bulk cement sales surged to N67.17 billion in the nine-month period from N1.69 billion in the corresponding period of 2025.
This represents an increase of approximately 3,880 percent, taking bulk cement’s contribution to total revenue to 6.2 percent from about 0.2 percent.
Bagged cement remained the company’s dominant revenue source, generating N1.02 trillion, up 19 percent from N857.05 billion a year earlier.
The growth in bulk cement sales suggests that the company’s strategy of expanding its customer base beyond conventional bagged cement distribution is gaining traction.
The development also provides an additional route to market penetration, particularly as the company continues to invest in logistics and distribution infrastructure.
However, the expansion came amid pressure from energy costs.
Energy consumption expenses increased by 21.5 percent to N216.62 billion from N178.24 billion, making energy one of the largest components of production costs.
Operation and maintenance service charges, however, declined by 13.6 percent to N104.58 billion from N121.12 billion, helping to offset some of the pressure.
The company also reported higher repairs and maintenance expenses, which increased to N29.44 billion from N19.18 billion.
Despite these pressures, its EBITDA margin improved by 6.3 percentage points to 52.7 percent, according to the company’s analyst note.
BUA Cement also benefited from a significant reduction in financing costs, which further supported its profitability.
Net finance costs declined by 80.6 percent to N8.97 billion from N46.15 billion in the corresponding period of 2025.
Finance costs fell to N35.52 billion from N56.10 billion, while finance income increased to N26.55 billion from N9.94 billion.
The company also recorded a net foreign exchange gain of N29.16 billion, compared with N21.63 billion in the previous year.
The foreign exchange gain helped strengthen earnings, particularly as the company recorded exchange gains on its borrowings and cash positions.
Meanwhile, its total borrowings increased to N613.08 billion as of September 2026 from N469.38 billion at the end of December 2025, reflecting additional drawdowns of N233.27 billion during the period.
The increase in borrowings underscores the financing requirements associated with the company’s investment and expansion programme.
BUA Cement continued to commit significant resources to expanding its asset base, with property, plant and equipment increasing to N1.27 trillion as of September 2026 from N1.18 trillion at the end of 2025.
Capital expenditure, measured by purchases of property, plant and equipment, rose to N127.50 billion from N79.59 billion in the corresponding full-year 2025 comparison.
The investment comes as the company pursues its plan to increase installed production capacity from 17 million tonnes per annum to 23 million tonnes through its greenfield plant in Ososo, Edo State, and brownfield expansion in Kalambaina, Sokoto State.
The company’s expansion strategy is expected to strengthen its production capacity and position it to capture additional demand in Nigeria’s cement market.
However, operating cash flow declined to N304.54 billion from N451.36 billion in the comparative 2025 full-year figure, while cash and short-term deposits stood at N266.42 billion at September 2026.
The company also paid N338.64 billion in dividends during the nine-month period, compared with N69.42 billion in the whole of 2025.
‘Looking ahead, BUA Cement said it remained focused on achieving its fourth-quarter objectives through profitable partnerships with distributors and sustained efforts to reduce its cost to serve,’ the company disclosed.