Nigerian billionaire Abdul Samad Rabiu’s BUA Cement posts $238 million half-year profit

BUA Cement Plc, Nigeria’s second-largest cement producer controlled by Abdul Samad Rabiu, reported a sharp rise in first-half profit for 2026 as higher cement sales and stronger operating performance outweighed a bigger tax bill. Profit after tax climbed to N324.88 billion ($238 million) for the six months ended June 30, 2026, from N180.9 billion ($133 million) a year earlier, according to the company’s unaudited financial statements.

The stronger bottom line was supported by steady growth in revenue across the business. Revenue rose to N728.93 billion ($533.5 million) in the first half from N580.3 billion ($424.7 million) a year earlier, driven largely by demand for bagged cement, which generated N688.77 billion ($504 million) in sales. Revenue from bulk cement also jumped to N40.15 billion ($29.4 million) from N236.29 million ($173,000), adding to the company’s overall sales growth. Gross profit increased to N427.03 billion ($313 million) from N286.36 billion ($210 million), reflecting stronger revenue despite a modest rise in production costs.

BUA Cement delivers strong profit growth

The increase in sales also flowed through to earnings. Operating profit rose to N371.27 billion ($272 million) from N245.39 billion ($180 million), even as the company spent more on distribution and administration to support its expanding business. Selling and distribution expenses increased to N40.45 billion ($29.6 million) from N29.81 billion ($22 million), while administrative expenses rose to N15.83 billion ($11.6 million) from N12.21 billion ($8.9 million). Finance costs, however, fell sharply to N22.14 billion ($16.2 million) from N38.14 billion ($28 million), helping limit the company’s net finance cost to N3.41 billion ($2.5 million).

Foreign exchange movements also provided additional support. BUA Cement recorded a net exchange gain of N16.57 billion ($12.1 million), up from N782.82 million ($574,000) in the corresponding period last year. That helped lift profit before tax to N384.44 billion ($282 million), compared with N214.8 billion ($157.3 million) a year earlier. Income tax expense rose to N59.56 billion ($43.6 million) from N33.91 billion ($24.8 million), reflecting higher earnings.

Major infrastructure moves boost production capacity

The results come as BUA Cement continues to invest in expanding its production capacity. A key subsidiary of BUA Group, the company currently produces 11 million tonnes of cement annually, making it Nigeria’s second-largest cement manufacturer. Rabiu, who owns a 95.78 percent stake, has continued to invest in additional capacity as the company works toward a target of producing 20 million tonnes annually. The expansion is backed by a $240 million investment program that includes a new power plant and related infrastructure designed to improve efficiency and lower production costs.

The company’s financial position also strengthened during the period as assets continued to grow alongside ongoing investment. Total assets increased to N1.92 trillion ($1.4 billion) at the end of June from N1.86 trillion ($1.36 billion) at the close of 2025. Total liabilities rose to N1.26 trillion ($924 million) from N1.18 trillion ($865 million), reflecting higher borrowings used to support growth. Shareholders’ equity stood at N659.13 billion ($483 million), down from N672.9 billion ($493.2 million) at the end of December after the company paid N338.64 billion ($248.1 million) in dividends during the first half. Basic earnings per share increased to N9.59 from N5.34, underscoring the company’s stronger profitability over the six-month period.