October 30, 2025/InvestmentOne Report

BUA Cement Plc recorded a 47.19% YoY growth in revenue to NGN858.73bn in 9M:2025, primarily driven by price increases, as Cost of sales (COS) increased modestly by 6.68% YoY to NGN429.47bn which accounted for about 50.00% of total revenue. Specifically, energy cost advanced by 11.81% YoY to NGN113.42bn, stock movement cost surged by 102.92% YoY to NGN84.14bn and materials cost rose by 21.24% YoY to NGN57.39bn. Meanwhile, manufacturing expenses fell by 28.89% YoY to NGN97.89bn, helping to temper the overall rise in production costs and mirroring the faster increase in pricing rather than volume expansion. Gross margin expanded to 49.99%, higher than 30.99% recorded in 9M:2024.

BUA Cement Plc is well positioned to sustain its earnings momentum in the final quarter of the year 2025, supported by improved exchange rate stability and sustained cost discipline, despite a still-elevated operating environment. Margins are projected to strengthen further, due to the groups continued cost optimization efforts amid the stabilizing macroeconomic environment. Hence, we place an OVERWEIGHT rating on BUACEMENT.

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