BUA Cement Plc has reported impressive financial results for Q1 2025, with pre-tax profit soaring by 368.58% year-on-year to N99.741 billion.
Similarly, profit after tax surged by 351.45% to N81.124 billion. Notably, both pre-tax and post-tax profits have already exceeded the total profits for the full year of 2024.
The 368.58% surge in pre-tax profit and 351.45% increase in net income in just one quarter, surpassing BUA Cement’s full-year 2024 profits, raises significant questions for investors and analysts about the company’s future growth prospects.
A review of BUA Cement’s Q1 2025 financials reveals a combination of factors driving its strong performance: robust revenue growth, enhanced cost efficiency, and a significant reduction in foreign exchange losses.
Revenue grew by 80.49% year-on-year, while the cost of sales increased by just 31.35%, leading to a sharp rise in gross profit.
This disparity boosted the gross profit margin to over 70%, reaching 47.61%, reflecting both strong topline performance and operational leverage.
Thanks to strong revenue growth, BUA Cement was able to absorb the impact of rising operating expenses.
As a result, BUA Cement achieved a higher operating profit, with the operating profit margin soaring by over 97% year-on-year to 40.44%.
The most significant contributor to this growth was the reduction in foreign exchange losses.
Last year, the company incurred a substantial N10.055 billion loss due to exchange rate fluctuations, but this year, the loss dropped sharply to just N837 million.
This decline in foreign exchange losses alleviated pressure from high finance costs and played a crucial role in driving the strong profit growth.
BUA Cement’s total assets increased slightly by 0.58%, reaching N1.58 trillion.
However, its debt saw a significant rise, jumping by over 382% in just three months to N447.62 billion, indicating a substantial increase in borrowing.
