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Additionally, web earnings witnessed a formidable progress as revenue after tax surged by 351.45% YoY to N81.124 billion.
Each the pre-tax revenue and post-tax revenue are greater than the 2024 full-year revenue
Key highlights (Q1 2025 v. Q1 2024):
- Income: N290.821 billion +80.49% YoY
- Price of Gross sales: N152.369 billion +31.25% YoY
- Gross Revenue: N138.452 billion +207.41% YoY
- Promoting and Distribution Bills: N14.411 billion +106.46% YoY
- Working revenue: N119.033 billion +255.57% YoY
- Web Finance Price: N17.790 billion +878.69% YoY
- Primary EPS: N2.39 +346.41% YoY
- Money and money equivalents: N138.972 billion +63.98%.
- Whole belongings: N1.583 trillion +0.81%
Fast Evaluation:
A 368.58% surge in pre-tax revenue and a 351.45% enhance in web earnings inside only one quarter, surpassing the corporate’s full-year 2024 revenue elevate key questions for traders and analysts.
What drove this explosive progress? Was it volume-led, price-driven, cost-optimized, or FX-related?
A evaluate of the Q1 2025 financials suggests a mix of things: sturdy income progress, improved value effectivity, and considerably decreased overseas alternate losses.
Income rose by 80.49% year-on-year, whereas the price of gross sales elevated by solely 31.35%. This disparity led to a pointy rise in gross revenue and boosted the gross revenue margin by over 70%, reaching 47.61%. These outcomes spotlight not solely improved topline efficiency but in addition operational leverage
Because of sturdy income progress, BUA Cement was in a position to soak up the influence of rising working bills.
Because of this, it nonetheless delivered increased working revenue, with the working revenue margin leaping by over 97% year-on-year to 40.44%.
The most important enhance got here from overseas alternate. Final 12 months, BUA Cement misplaced an enormous N10.055 billion because of alternate fee adjustments. However this 12 months, that loss dropped sharply to simply N837 million.
This helped scale back the stress from excessive finance prices and performed a giant function within the sturdy revenue progress.
Steadiness sheet evaluation
BUA Cement’s whole belongings (all the pieces it owns) rose barely to N1.58 trillion, displaying a small progress of 0.58%.
Nevertheless, its debt jumped sharply by over 382% in simply three months reaching N447.62 billion. That could be a large enhance in borrowing.
The excellent news is that the corporate’s shareholders’ fairness (what the homeowners actually personal) additionally grew strongly to N469.67 billion. Due to this, even with the rise in debt, the leverage ratio (which compares whole belongings to fairness) dropped to three.37.
This implies BUA Cement is now utilizing much less debt to help every naira of its belongings in comparison with earlier than, due to the stronger fairness base.
Share worth efficiency
BUA Cement is the seventh most respected firm on the Nigerian Change, with a market worth of N2.83 trillion.
Nevertheless, its share worth has dropped by 10% for the reason that begin of the 12 months as much as the final buying and selling day on April 24, 2025, to shut at N83.70.
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