October 30, 2026/Cordros Report
BUA Cement Plc (BUACEMENT) released its Q3-26 unaudited results close of business yesterday (29 October), reporting a 26.9% y/y increase in EPS to NGN4.08 (Q3-25: NGN3.22), bringing 9M-26 EPS to NGN13.68 (9M-25: NGN8.56). The earnings expansion was underpinned by a 28.5% y/y growth in revenue, a 192bps y/y expansion in EBITDA margin to 49.5%, and a net FX gain of NGN12.59 billion (Q3-25: net FX gain of NGN20.84 billion).
BUACEMENT’s revenue grew by 28.5% y/y in Q3-26 (9M-26: +26.6% y/y), supported by volume growth and the continued scale up of the bulk distribution channel. By segment, bagged cement sales rose by 19.4% y/y (92.4% of total revenue), while bulk cement sales expanded by 17.6x y/y (7.6% of revenue). On a q/q basis, revenue declined by 4.3%.
Gross margin expanded by 236bps y/y to 54.0% (9M-26: +698bps y/y to 57.1%), as revenue growth outpaced cost of sales growth (+22.2% y/y). The increase in cost was driven mainly by higher energy costs (+59.8% y/y), which accounted for 49.4% of cost of sales, alongside higher repairs and maintenance (+81.9% y/y). These were partly offset by lower materials costs (-68.1% y/y).
Meanwhile, EBITDA and EBIT margins expanded by 192bps and 300bps y/y to 49.5% and 46.2%, respectively, in Q3-26 (9M-26: +572bps and +679bps y/y to 52.6% and 49.4%). The expansion was supported by operating expenses growing slower than revenue (OPEX: +18.7% y/y), with distribution costs (+21.3% y/y) accounting for 58.4% of total OPEX.
The company also reported net finance income of NGN7.03 billion in Q3-26 (Q3-25: net finance income of NGN6.07 billion), supported by a decline in interest expense (-25.5% y/y), higher interest income (+146.1% y/y), and a net FX gain of NGN12.59 billion (vs net FX gain of NGN20.84 billion in Q3-25). The decline in interest expense reflects NGN3.14 billion of borrowing costs capitalised to qualifying assets in the quarter. For 9M-26, this translates to a net finance income of NGN20.20 billion (9M-25: net finance cost of NGN24.53 billion).
Overall, profit before tax (PBT) increased by 39.2% y/y to NGN172.27 billion, while profit after tax (PAT) rose by 26.9% y/y to NGN138.22 billion, following a tax expense of NGN34.05 billion (Q3-25: NGN14.80 billion). The higher charge lifted the effective tax rate to 19.8% (Q3-25: 12.0%).
Comment: BUACEMENT delivered a steady Q3-26 on a y/y basis, with volume growth and the scale-up of the bulk channel lifting earnings. The q/q softness reflects heavy rainfall and poor road conditions, which disrupted distribution, while supply constraints lifted energy costs and weighed on gross margin. Looking ahead, with energy costs having normalised, we expect revenue and margins to recover in Q4-26 as drier weather improves road conditions. Our estimates are under review.
