BUA Cement Plc, one of Nigeria’s leading cement producers, has reported a revenue of N472.22 billion for the 2024 financial year, according to its latest financial statement filed with the Nigerian Exchange Group (NGX). This marks a 17% increase compared to the N405.5 billion recorded in 2023, driven by a combination of higher cement prices and increased sales volumes.
Despite the revenue growth, BUA Cement’s profit after tax declined to N80.49 billion, representing a 21% drop from the N102.87 billion posted in the previous year. The company attributed the decline to rising production costs, higher energy expenses, and forex pressures impacting input prices.
Cost Pressures Weigh on Margins
BUA Cement’s cost of sales surged to N298.63 billion in 2024, a sharp increase from N231.7 billion in 2023. This reflects the broader challenges faced by Nigerian manufacturers as imported production inputs, particularly fuel and spare parts, became significantly more expensive due to the naira’s sustained depreciation.
The company’s operating expenses also rose steeply to N33.29 billion, up from N26.78 billion a year earlier, reflecting inflationary pressures and increased logistics costs.
FX Losses and Interest Expenses
In addition to higher costs, BUA Cement’s finance costs jumped to N28.5 billion, compared to N16.5 billion in 2023. A significant portion of this increase stemmed from foreign exchange losses incurred on dollar-denominated obligations, as the naira weakened significantly throughout 2024.
Expansion Drive and Market Position
BUA Cement’s management emphasized that ongoing capacity expansion projects remain on track, with the company seeking to consolidate its position as a major player in West Africa’s cement market. In 2024, the company commissioned new production lines aimed at boosting installed capacity to 17 million metric tonnes per annum, part of a broader strategy to meet growing demand from Nigeria’s construction sector and support exports to neighbouring countries.
Dividends and Outlook
Despite the profit decline, BUA Cement declared a dividend of N1.80 per share, underscoring its commitment to shareholder returns. However, analysts expect profitability to remain under pressure in 2025 if currency volatility, energy price shocks, and inflation persist.
Sector Context
The Nigerian cement industry is grappling with rising energy costs, particularly the price of diesel and gas used in production. With the Federal Government’s aggressive infrastructure agenda, demand for cement is expected to remain strong in the medium term, offering companies like BUA Cement some revenue resilience, albeit with compressed margins.
Key Financial Highlights (2024 Full Year)
| Metric | 2024 (N’bn) | 2023 (N’bn) | Change |
| Revenue | 472.22 | 405.5 | 17% |
| Profit After Tax | 80.49 | 102.87 | -21% |
| Cost of Sales | 298.63 | 231.7 | 29% |
| Operating Expenses | 33.29 | 26.78 | 24% |
| Finance Costs | 28.5 | 16.5 | 73% |
| Dividend Per Share | N1.80 | N2.00 | -10% |
Arbiterz Analysis
BUA Cement’s latest financials highlight the tough balancing act for Nigerian manufacturers — raising prices to offset costs without alienating customers while navigating a volatile operating environment. The company’s strong revenue growth underscores its resilient market position, but profitability pressures may persist unless macroeconomic conditions improve.
