Business & Finance
BUA Cement Posts 60% Profit Surge to ₦463.1bn in First Nine Months of 2026
BUA Cement Plc, controlled by Nigerian billionaire Abdul Samad Rabiu, reported a 60 per cent rise in profit after tax to ₦463.1bn for the nine months ended 30 September 2026, according to unaudited results filed with the Nigerian Exchange. The profit increase was driven by a 26.5 per cent rise in revenue to ₦1.09tn and a modest 8.8 per cent rise in cost of sales to ₦466.4bn, which helped gross profit climb 44.2 per cent to ₦620.3bn and lift the gross profit margin to 57.1 per cent from 50.1 per cent a year earlier.
Operating profit rose 46.7 per cent to ₦536.5bn, while profit before tax increased 64.4 per cent to ₦556.7bn. Earnings per share grew to ₦13.68 from ₦8.56. The company’s quarterly profit fell for the third consecutive quarter, dropping from ₦176.4bn in Q1 to about ₦148.5bn in Q2 and ₦138.2bn in Q3. Third‑quarter profit after tax rose 26.9 per cent year‑on‑year to ₦138.2bn, with revenue up 28.5 per cent to ₦357.8bn. The tax charge more than doubled to ₦34.1bn in Q3, while foreign exchange gains fell to ₦12.6bn from ₦20.8bn a year earlier. Finance costs fell 36.7 per cent to ₦35.5bn, and finance income nearly tripled to ₦26.6bn.
BUA Cement’s profit growth outpaced that of Dangote Cement, which reported a 31 per cent increase in nine‑month profit to ₦974.8bn. Despite higher earnings, the company increased borrowing to support expansion: total bank loans rose to ₦613.1bn at 30 September from ₦469.4bn in December 2025, while cash balances fell to ₦266.4bn from ₦280.4bn. Capital expenditure on property, plant and equipment reached ₦127.5bn during the nine‑month period, compared with ₦79.6bn spent in 2025.
In January, BUA Cement signed a $240m agreement with China’s CBMI Construction to build a sixth production line at its Sokoto plant. The new line, with an annual capacity of three million tonnes, is expected to bring total installed capacity to 20 million tonnes annually.
The company paid ₦338.6bn in dividends during the period, following shareholders’ approval of a final dividend of ₦10 per share for 2025. Total assets increased to ₦2.06tn, and shareholders’ equity rose to ₦797.4bn as of 30 September.
Rabiu holds a 56.03 per cent direct stake in BUA Cement; BUA Industries Ltd owns 39.75 per cent, and his indirect holding brings his overall controlled interest to about 97.7 per cent. BUA Cement shares closed at ₦293.40 on Thursday, valuing the company at approximately ₦9.94tn.
Frequently asked questions
What was BUA Cement's profit after tax for the first nine months of 2026?
₦463.1bn, a 60% increase from the previous period.
How did BUA Cement's gross profit margin change in the first nine months of 2026?
It rose to 57.1% from 50.1% a year earlier.
What new production line did BUA Cement sign a contract for in January 2026?
A $240m agreement with China’s CBMI Construction to build a sixth production line at its Sokoto plant, adding an annual capacity of three million tonnes.