BUA Cement Plc has released its unaudited financial statements for Q1 ended March 31, 2026, reporting a pre-tax profit of N192.88 billion, up from N99.7 billion in Q1 2025.
The performance was driven by strong revenue, with quarterly sales rising to N355 billion from N288 billion in Q1 2025.
Apart from revenue, the significant growth in interest income and the nearly flat cost of sales contributed to the bottom-line profitability.
Hence, profit after tax jumped to N176 billion from N81 billion, while earnings per share jumped to N5.21 from N2.40.
Key highlights (Q1 2026 vs Q1 2025)
- Revenue: N354.979 billion, up 23.37% YoY
- Cost of sales: N153.079 billion, up 0.67% YoY
- Gross profit: N201.899 billion, up 45.63% YoY
- Operating profit: N179.509 billion, up 63.19% YoY
- Finance income: N11.278 billion, up 636.34% YoY
- Finance costs: N161.7 million, down 99.59% YoY
- Net finance cost: N13,013.3 million, up 1654.15% YoY
- Earnings per share: N5.21, up 117.60% YoY
- Total assets: N1.387 trillion up 2.15% YoY
- Shareholders funds: N849.277 billion; down 2.68% YoY
- Retained earnings: N638.693 billion; up 38.15% YoY
Speaking on the results release, the Managing Director, Yusuf Binji, said,
- “It is encouraging to see our results and organizational transformation aligning so well. Revenue growth remained strong as we continue to meet cement demand, including in the bulk segment. We also progressed our business transformation programme during the quarter, including the realignment of the Transport Department for greater effectiveness. While the transition presented some challenges, we have now achieved operational stability.”
On the company’s outlook, the MD stated
- Over the coming quarters, our focus will be on further reducing operating costs through optimization and enhanced monitoring, while increasing brand penetration, particularly within what we define as ‘new markets’.”
Driving the numbers
Notes to the financial statements indicate that revenue was primarily driven by sales of bagged cement, which accounted for over 95% of total revenue, compared to revenue from bulk cement sales.
The almost flat growth in the cost of sales helped profitability. The significant drop in operation and maintenance service charge to N31.41 billion from N52.9 billion in Q1 2025, and the drop in energy consumption to N67 billion, helped moderate the cost of sales.
- Although operating expenses, as reflected in administrative and distribution expenses, remained elevated at N23 billion, operating profit still came in strong at N179.5 billion, yielding an impressive margin of over 50%.
Beyond revenue and moderated costs, finance income, driven by interest income, surged to N11.279 billion, 639% higher than the N1.52 billion recorded in Q1 2025.
- Coupled with the drop in interest expenses, the company recorded net finance income of N161.7 million, a significant improvement compared to the net finance cost of N17.792 billion in Q1 2025.
On the balance sheet, total assets rose to N1.987 trillion, driven by plant, property and equipment and cash and short-term deposits.
- On the liabilities side, trade and other payables of N294 billion and borrowing of N443.49 billion (though down 5.5%) accounted for the bulk of obligations of N1.138 trillion.
- Retained earnings closed at N638.693 billion, forming the largest component of equity, which improved to N849 billion from N673 billion in the prior period.
Market reaction
BUA Cement shares have yet to fully react to the Q1 2026 results, trading flat on April 23, 2026, at N317 per share.
Year-to-date, the stock remains up 77.6% on the Nigerian Exchange, following a 91% gain in 2025
