Last Update28 Jul 25
WaneInvestmentHouse made no meaningful changes to valuation assumptions.
Summary: BUA Cement delivered a stellar financial performance in H1 2025, with revenue rising 59.4% YoY to ₦580.3 billion and PAT surging over 428% YoY to ₦180.9 billion. This growth reflects pricing power, improved volume uptake, and operational efficiency. However, rising finance costs and a large debt position remain key concerns.
🔑 Strengths
- Strong Revenue Growth: 59.4% YoY growth driven by resilient demand and strategic market positioning.
- Robust Profitability: Operating profit rose by 199.4% YoY, highlighting strong cost control and margin resilience.
- Significant PAT Growth: PAT surged over 4x YoY to ₦180.9bn, with EPS jumping to 534.18 kobo vs 101.15 kobo in H1 2024.
- Healthy Cash Position: Cash and cash equivalents more than doubled to ₦163.4bn from ₦84.7bn at FY 2024.
- Strong Equity Base: Retained earnings increased by ₦180.9bn, boosting total equity to ₦569.4bn (+46.5% YTD).
⚠️ Weaknesses
- High Finance Costs: Net finance cost rose sharply to ₦31.4bn from a net income of ₦1.1bn YoY due to increased debt servicing.
- Debt Burden: Total borrowings (long + short term) remain elevated at ₦476.97bn, limiting financial flexibility.
- Contract Liabilities Drop: Significant drop in contract liabilities to ₦42.3bn from ₦113.9bn indicates slower future orders or prepayments.
- Capex Slowdown: Slight drop in PPE to ₦1.14tn suggests limited expansion activity in the short term.
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