BUA Cement Plc has released its unaudited financial results for Q1 2025, ended March 31, 2025, reporting an impressive 368.58% YoY growth in pre-tax profit to N99.741 billion.
Also, net income witnessed an impressive growth as profit after tax surged by 351.45% YoY to N81.124 billion.
Both the pre-tax profit and post-tax profit are more than the 2024 full-year profit
Key highlights (Q1 2025 v. Q1 2024):
- Revenue: N290.821 billion +80.49% YoY
- Cost of Sales: N152.369 billion +31.25% YoY
- Gross Profit: N138.452 billion +207.41% YoY
- Selling and Distribution Expenses: N14.411 billion +106.46% YoY
- Operating profit: N119.033 billion +255.57% YoY
- Net Finance Cost: N17.790 billion +878.69% YoY
- Basic EPS: N2.39 +346.41% YoY
- Cash and cash equivalents: N138.972 billion +63.98%.
- Total assets: N1.583 trillion +0.81%
Quick Analysis:
A 368.58% surge in pre-tax profit and a 351.45% increase in net income within just one quarter, surpassing the company’s full-year 2024 profit raise key questions for investors and analysts.
What drove this explosive growth? Was it volume-led, price-driven, cost-optimized, or FX-related?
A review of the Q1 2025 financials suggests a combination of factors: strong revenue growth, improved cost efficiency, and significantly reduced foreign exchange losses.
Revenue rose by 80.49% year-on-year, while the cost of sales increased by only 31.35%. This disparity led to a sharp rise in gross profit and boosted the gross profit margin by over 70%, reaching 47.61%. These results highlight not only improved topline performance but also operational leverage
Thanks to strong revenue growth, BUA Cement was able to absorb the impact of rising operating expenses.
As a result, it still delivered higher operating profit, with the operating profit margin jumping by over 97% year-on-year to 40.44%.
The biggest boost came from foreign exchange. Last year, BUA Cement lost a huge N10.055 billion due to exchange rate changes. But this year, that loss dropped sharply to just N837 million.
This helped reduce the pressure from high finance costs and played a big role in the strong profit growth.
Balance sheet analysis
BUA Cement’s total assets (everything it owns) rose slightly to N1.58 trillion, showing a small growth of 0.58%.
The company’s shareholders’ equity (what the owners truly own) also grew strongly to N469.67 billion.
Share price performance
BUA Cement is the 7th most valuable company on the Nigerian Exchange, with a market value of N2.83 trillion.
However, its share price has dropped by 10% since the start of the year up to the last trading day on April 24, 2025, to close at N83.70.
