April 24, 2026/Cordros Report
BUA Cement Plc (BUACEMENT) released its Q1-26 unaudited financials yesterday (23 April), reporting a 117.4% y/y surge in EPS to NGN5.21 (Q1-25: NGN2.40). The expansion in earnings was driven by a 22.1% y/y growth in revenue, a muted increase in cost of goods sold (+0.5% y/y), and a net FX gain of NGN13.01 billion (vs. a net FX loss of NGN840.00 million in Q1-25).
BUACEMENT’s revenue grew by 22.1% y/y in Q1-26, which we attribute primarily to higher cement prices, reflecting sustained cost based price recovery, amid a likely moderation in volumes. We note that ex-factory prices appear to have converged closer to peer levels. By segment, bagged cement sales increased by 17.2% y/y (95.9% of total revenue), while bulk cement sales rose significantly by 109.2x y/y (4.1% of revenue), reflecting the recent rollout of bulk distribution to contractors via tanker channels. On a q/q basis, revenue increased by 10.7%.
Gross margin expanded by 927bps y/y to 56.9%, supported by the modest growth in COGS (+0.5% y/y) relative to revenue. Cost containment was aided by relative exchange rate stability, lower energy costs (-9.9% y/y), benefiting from the company’s diversified fuel mix at the Obu plant, and a significant reduction in operations and maintenance service charges (-40.6% y/y).
Similarly, EBITDA and EBIT margin also improved by 871bps y/y and 964bps y/y to 53.9% and 50.6%, respectively, as strong topline growth more than offset the 12.6% y/y increase in operating expenses. The rise in OPEX was largely driven by higher distribution costs (+7.8% y/y, 50.1% of total OPEX) and staff costs (+15.2% y/y, 14.3% of OPEX).
Meanwhile, the company reported a net finance income of NGN13.18 biilion (Q1-25: net finance cost of NGN18.63 billion), driven by a sharp increase in interest income (+637.7% y/y), a decline in interest expense (-42.5% y/y), and the net FX gain of NGN13.01 billion (vs net FX loss of NGN840.00 million in Q1-25).
Overall, profit before tax (PBT) increased by 93.2% y/y to NGN192.68 billion, while profit after tax (PAT) rose by 117.4% y/y to NGN176.38 billion, following a tax expense of NGN16.31 billion.
Comment: BUACEMENT delivered a strong Q1-26 performance, underpinned by higher pricing, cost efficiency, and favourable FX movements. Margin expansion reflects the impact of cost optimisation measures implemented over the past year, particularly around energy and production inputs. Looking ahead, we expect the company to maintain its pricing stance and cost discipline, which should support margins at current levels through the year. However, potential pressures from energy costs and inflation, particularly in the context of ongoing Middle East tensions, remain key risks to monitor. Our estimates are under review.
