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BUA Cement Plc third quarter profit has exceeded Full-Year 2024 figures as a healthier balance sheet continues to drive record margins and earnings, which indicates the company is poised to deliver higher returns to shareholders.
For instance, the cement maker’s third quarter (Q3) profit that surged 491.89 percent to N289.85 billion is higher than Full-year 2024’s N73.90 billion, which means investors are going to be paid a bumper dividend.
Earnings before, interest, and taxation (EBIT) spiked by 165.28 percent to N365.62 billion in September 2025 from N137.82 billion as at September 2024.
BUA cement is benefitted from price adjustment as it passes on rising input costs to the final consumers in the face of inflationary pressures that was aggravated by the abrupt devaluation of the currency as well as the removal of subsidy on fuel some two and a half years ago.
Acceleration in construction activities, which underpinned demand for the products also helped strengthen revenue.
For instance, revenue spiked by 47.19 percent to N858.73 billion in the period under review from N48.97 billion the previous year.
The introduction of solid fuel at the Obu Plant as well as the construction of a 700TPD regasification plant at the Sokoto Plant led to efficiency gains as the cement maker now spends less in producing each unit of products.
Cost of sales ratio reduced to 50 percent in September 2025 from 69 percent as at September 2024. Gross margin rose to 49.98 percent in the period under review from 31 percent the previous period. Net profit margin moved to 33.75 percent in September 2025 from 8.39 percent as at September 2024.
A reduction in long term debts and a robust free cash flow validates a balance sheet strength and a propitious future on the back of the government proposed infrastructure spending makes BUA Cement a stock to own.
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