BUA Cement Plc has released its unaudited financial results for the first quarter of 2025, ended March 31, and the numbers are nothing short of remarkable. The company reported a staggering 368.58% year-on-year increase in pre-tax profit, reaching N99.74 billion, while profit after tax soared by 351.45% YoY to N81.12 billion—both figures exceeding its entire full-year profit for 2024.
This exceptional performance has raised eyebrows across the market, prompting deeper scrutiny from investors and analysts alike. What exactly powered such unprecedented growth in just three months?
Revenue Soars, Costs Held in Check
At the heart of BUA Cement’s strong showing was a robust 80.49% YoY increase in revenue, which climbed to N290.82 billion in Q1 2025. Notably, the cost of sales rose by a comparatively modest 31.25% to N152.37 billion, significantly boosting the company's gross margin.
This widened margin enabled a sharp 207.41% growth in gross profit, reaching N138.45 billion, and showcased the firm’s operational leverage. Despite a more than 100% increase in selling and distribution expenses, the company absorbed these higher costs thanks to its outsized revenue growth and cost efficiencies.
Operating and Net Profits Skyrocket
Operating profit came in at N119.03 billion, a 255.57% increase from Q1 2024, pushing the operating profit margin to 40.44%, up from 20.5% in the previous year. This signals the company's growing ability to generate profit from its core operations despite rising expenses.
Meanwhile, basic earnings per share (EPS) rose by an impressive 346.41% YoY to N2.39, further underlining the company’s improved profitability.
Foreign Exchange Relief Provides a Major Tailwind
One of the most notable contributors to BUA Cement’s bottom-line surge was the dramatic drop in foreign exchange losses. In Q1 2024, the company recorded a hefty N10.06 billion FX loss, but in Q1 2025, this figure fell sharply to N837 million. This helped offset the spike in net finance costs, which jumped 878.69% YoY to N17.79 billion.
The reduction in FX losses not only eased pressure on financing but also played a significant role in the firm’s strong profit recovery.
Financial Position Remains Stable
On the balance sheet side, total assets inched up to N1.58 trillion, representing a slight 0.81% growth. Cash and cash equivalents also saw a healthy 63.98% increase, rising to N138.97 billion, reflecting improved liquidity. Additionally, shareholders' equity strengthened to N469.67 billion, signaling growing value for owners.
Market Valuation and Share Price Performance
Despite its impressive financial performance, BUA Cement’s stock has not mirrored its earnings trajectory. As of April 24, 2025, the company’s share price had declined by 10% year-to-date, closing at N83.70. Nonetheless, BUA Cement remains the seventh most valuable company on the Nigerian Exchange, boasting a market capitalization of N2.83 trillion.
BUA Cement's Q1 2025 results signal a significant turnaround driven by a mix of robust sales growth, cost discipline, and reduced forex pressure. The company’s ability to outpace its entire 2024 profit within just one quarter positions it as a standout performer in Nigeria’s industrial sector.
That said, with the share price lagging despite the financial upside, investors may need to dig deeper to assess whether the market is undervaluing this strong operational rebound—or simply bracing for potential headwinds ahead.