July 23, 2026/Cordros Report
BUA Cement Plc (BUACEMENT) released its Q2-26 unaudited results today, reporting a 48.8% y/y increase in EPS to NGN4.39 (Q2-25: NGN2.95), bringing H1-26 EPS to NGN9.59 (H1-25: NGN5.34). The earnings expansion was underpinned by a 29.2% y/y growth in revenue, a 642bps y/y expansion in EBITDA margin to 54.3%, and a net FX gain of NGN3.56 billion (Q2-25: net FX gain of NGN1.62 billion).
BUACEMENT’s revenue grew by 29.2% y/y in Q2-26 (H1-26: +25.6% y/y), supported by a combination of sustained pricing and improved volume offtake. By segment, bagged cement sales rose by 20.3% y/y (93.1% of total revenue), while bulk cement sales expanded by 242.9x y/y (6.9% of revenue), reflecting the continued scale-up of the bulk distribution channel to contractors. On a q/q basis, revenue increased by 5.3%.
Gross margin expanded by 922bps y/y to 60.2% (H1-26: +924bps y/y to 58.6%), as revenue growth outpaced cost of sales growth (+4.9% y/y). The modest growth in cost reflects higher energy costs (+29.2% y/y), which outweighed gains from relative exchange rate stability and a sustained reduction in operations and maintenance service charges (+8.2% y/y).
Meanwhile, EBITDA and EBIT margins expanded by 642bps and 763bps y/y to 54.3% and 51.3%, respectively, in Q2-26 (H1-26: +758bps and +865bps y/y to 54.1% and 50.9%). The expansion held despite a 57.5% y/y increase in operating expenses. The expansion in OPEX was driven by an 83.9% y/y rise in distribution costs, which accounted for 62.8% of total OPEX.
The company also reported a steep drop in net finance cost to NGN8.79 million in Q2-26 (Q2-25: net finance cost of NGN11.96 billion), supported by a decline in interest expense (-41.4% y/y), higher interest income (+42.3% y/y), and a net FX gain of NGN3.56 billion (vs net FX gain of NGN1.62 billion in Q2-25). For H1-26, this translates to a net finance income of NGN13.17 billion (H1-25: net finance cost of NGN30.59 billion).
Overall, profit before tax (PBT) increased by 66.7% y/y to NGN191.75 billion, while profit after tax (PAT) rose by 48.8% y/y to NGN148.50 billion, following a tax expense of NGN43.25 billion.
Comment: BUACEMENT carried over its Q1-26 momentum into the second quarter, delivering another strong performance marked by firm pricing, volume expansion, contained energy costs, and continued FX support. The bulk cement channel continued to gain traction in the quarter, extending the growth recorded in Q1-26 and establishing a second revenue leg, although at a higher distribution cost. Looking ahead, we expect the company to maintain its pricing stance and cost discipline, which should support margins at current levels through the year. Our estimates are under review.
