BUA Cement Q3 revenue rises 91 percent amid higher costs, nine-month profit dips

Oluwatosin Racheal Alabi -
Key Points
  • BUA Cement’s Q3 sales reached NGN 219.46 billion, a 91% increase from Q3 2023, showing strong demand and market growth.
  • Despite revenue gains, net income rose only 18% to NGN 14.72 billion due to rising costs.
  • Basic earnings per share increased to NGN 0.43 from NGN 0.37, reflecting marginal profitability improvements.

BUA Cement Plc, Nigeria’s second-largest cement producer led by billionaire Abdul Samad Rabiu, reported a sharp 91-percent rise in third-quarter revenue to NGN 219.46 billion ($146.14 million), up from NGN 114.8 billion ($76.45 million) a year ago. However, mounting production costs, largely driven by raw materials and energy, impacted the nine-month profitability, with net income falling to NGN 48.97 billion ($32.6 million) from NGN 76.07 billion ($50.6 million) last year.

The company’s unaudited results for the period ending September 30, 2024, underscore BUA Cement’s strategic expansion efforts and strong market positioning in Nigeria’s construction sector. Yet, escalating costs have pressured margins. Despite a third-quarter net income increase of 18 percent year-on-year to NGN 14.72 billion ($9.8 million), profit margins narrowed, as reflected in a modest rise in basic earnings per share to NGN 0.43 from NGN 0.37.

With nine-month revenues reaching NGN 583.41 billion ($388 million), BUA Cement continues to leverage Nigeria’s growing construction demand. Abdul Samad Rabiu, who holds a 96% stake, has driven BUA’s capacity expansion to 11 million tonnes annually, cementing its leadership in the industry.

Despite financial challenges, BUA Cement remains resilient, with total assets climbing to NGN 1.24 trillion ($826 million) from NGN 1.21 trillion ($805 million) in 2023. Retained earnings also grew 10.6% to NGN 187.49 billion ($125 million), underscoring the firm’s robust market position amid economic headwinds. Looking ahead, BUA Cement aims to implement cost controls and capitalize on the sustained demand within Nigeria’s construction industry to support future growth.