Despite reporting record-breaking earnings in the first half of 2025, BUA Cement Plc is facing growing concerns over its financial health.
The cement giant announced a 59.5% jump in revenue to N580.30bn and a fivefold surge in profit after tax to N180.9bn.
However, BusinessNG analysts warn that the company’s liquidity position and weakening balance sheet paint a less flattering picture.
Cash and short-term deposits slumped by 18.8% to N163.41bn, while current assets contracted by 2.76% due to declines in prepayments and cash reserves. At the same time, the company’s working capital position weakened, leaving it more vulnerable to cost shocks in a high-inflation environment.
Although total assets grew to N1.61trn, this was largely driven by fixed assets and inventory build-up rather than cash flow strength.
Market watchers also flagged BUA Cement’s reliance on FX gains to bolster profitability, warning that this may not be sustainable in the long term.
While the stock rebounded strongly after the results announcement, some capital market operators caution that the company’s liquidity pressures and thinner gross margins could erode shareholder value if not carefully managed.
In an industry already battling rising energy costs and tight financing conditions, BUA Cement’s glittering profit figures may mask deeper structural weaknesses that could weigh on future performance
