The cement giant attributed this exceptional profitability to a combination of factors, including a robust increase in revenue and, critically, the reversal of substantial exchange losses that impacted previous periods.
Revenue Growth Fuels Topline Expansion
BUA Cement's revenue in Q2 2025 climbed to N289.4 billion, representing a solid 42.73% year-on-year increase. For the entire first half of 2025, revenue saw an even more substantial leap, rising 59.45% to N580.3 billion from N363.9 billion in the corresponding period of 2024. Cement sales remained the sole driver of this impressive topline growth, underscoring the strong demand for its core product.
Cost Management and Profitability
While the cost of sales saw a slight increase of 2.60% to N142.1 billion in Q2, primarily due to higher manufacturing and energy expenses, BUA Cement's ability to manage these costs relative to its revenue growth was evident. This efficiency allowed gross profit to nearly double, surging by 129.32% to N147.3 billion from N64.2 billion a year earlier.
Despite a 65.31% rise in selling and distribution expenses, reaching N15.3 billion, the company's robust operational performance ensured that operating profit still soared by 160.64% year-on-year to N126.3 billion in Q2.
Exchange Gain Reversal: A Key Contributor
A pivotal factor in BUA Cement's boosted bottom line was the significant turnaround in its foreign exchange position. The company reversed a substantial N29.9 billion exchange loss recorded in Q2 2024 into a N1.6 billion gain in Q2 2025. This swing, alongside finance costs totaling N18.8 billion primarily due to interest expenses, played a crucial role in the extraordinary pre-tax profit figure.
Strengthening Balance Sheet and Market Confidence
On the balance sheet, BUA Cement demonstrated continued financial strength. Total assets grew to N1.6 trillion as of June 2025, up from N1.5 trillion in December 2024. Significantly, retained earnings doubled, climbing by 102.96% to N356.5 billion, reflecting the company's strong earnings momentum and improved financial health.
As of the market close on July 25, 2025, BUA Cement’s share price stood at N135 on the Nigerian Stock Exchange, showcasing investor confidence with a year-to-date gain of 45.16%. The company's exceptional Q2 performance sets a strong precedent for the remainder of the fiscal year, signaling a period of sustained growth and profitability.
Key Financial Highlights (Q2 2025 vs Q2 2024):
- Revenue: N289.4 billion, +42.73% YoY
- Cost of Sales: N142.1 billion, +2.60% YoY
- Gross Profit: N147.3 billion, +129.32% YoY
- Selling and Distribution Expenses: N15.3 billion, +65.31% YoY
- Operating Profit: N126.3 billion, +160.64% YoY
- Finance Costs: N18.8 billion, +213.52% YoY
- Pre-tax Profit: N115.06 billion, +510.65% YoY
- Retained Earnings: N356.5 billion, +102.96% YoY