BUA Cement’s Revenue To Hit N1.2trn As Margins Strengthen – Independent Newspaper Nigeria

The latest research report by house Chapel Hill Denham Limited, has revealed that a combination of industry-wide price adjustments and resilient demand from the construction and real estate sectors will help drive BUA Cement’s revenue past the N1.2 trillion mark as investment in alternative energy underpins margins.

The research house, led by Tajudeen Ibrahim, forecast revenue growth of 39.2% year on year (yoy), with revenue crossing the One trillion Naira mark to N1.22 trillion.

“This forecast is supported by an expected 8.0% yoy increase in sales volumes to 8.84mmtpa and a 28.9% yoy rise in average realised cement prices,” said analysts at Chapel Hill Denham.

BUA cement’s revenue was up 59.40 percent in June 2025 to N580.30 billion, while profit after tax (PAT) surged by 428.10 percent to N180.89 billion.

Despite the devaluation of the Naira and decrepit infrastructure, BUA Cement is able to tame costs, which bolstered efficiency and margins as the company continues to benefit from efficiency gains from the introduction of solid fuel at the Obu Plant.

Analysts at Chapel Hill are of the view that the construction of a 700TPD regasification plant at the Sokoto Plant will lead to further cost-savings, as such, they forecast full year end (FY-25E) OPEX-to-sales ratio of 7.1%, the lowest in over 5 years.

The cement maker’s OPEX-to-sales ratio stood at 7 percent as at June 2025, that compares with peer rivals Dangote Cement and Lafarge Africa with a cost ratio of 21.50 percent and 20.90 percent respectively, according to MoneyCentral calculations.

BUA cement earnings before interest taxation depreciation and amortisation (EBITDA) margin expanded by 22.22 basis points to 48.10 percent in June 2025.

The industrial good firms EBITDA margin of 48.40 percent is higher than Dangote Cement and Lafarge Africa with a ratio of 45.60 percent and 40.40 percent respectively.

With an improvement in operating cash flow and strong operating performance that strengthens margins, analysts are sanguine BUA Cement will continue to deliver higher returns to shareholders.

The cement giant’s shares have gained 63.2% this year, outperforming both the NGX ASI and the NGX Industrial Index return of 36.4% and 39.8% respectively.