BUA Cement, the second largest cement manufacturer, recorded the highest profit growth among its peers in the first three months ended March 2026, outperforming rivals Lafarge Africa Plc and Dangote Cement Plc.
A BusinessDay analysis of the latest financial statements shows that BUA Cement’s after-tax profit surged by 117.2 percent year-on-year in Q1 — the biggest growth among the top three cement makers. Lafarge Africa followed with 98 percent, and Dangote Cement posted 53 percent.
Despite the slower pace, Dangote Cement, Africa’s largest cement producer, re-entered the trillionaire club with a market capitalisation of N19.9 trillion ($14.6 billion) as of May 5, retained its dominance in absolute earnings, and reported a profit of N321 billion.
BUA Cement, owned by Africa’s second-richest man, Abdulsamad Rabiu, according to the Bloomberg Billionaires Index, ranked second with a profit of N176 billion, while Lafarge Africa recorded N97 billion.
In growth, Lafarge overtook Dangote as the second cement manufacturer with a profit growth rate of 98 percent and 53 percent, respectively.
Read also: BUA Cement reports over 380% jump in profit, as earnings top N1trn
Cost control and FX gains drive BUA’s performance
BUA Cement’s first-quarter performance was underpinned by disciplined cost management and a swing to net foreign exchange gains. The company’s cost of sales growth rose marginally by 0.7 percent year-on-year to N153.1 billion, due to lower energy consumption in the period (-9.54 percent) and operational and maintenance service charges (-40.2 percent). As a result, gross margin expanded by 9.2 ppts to 56.9 percent.
Although the company generated the second-highest revenue of N348 billion. Dangote Cement continues to lead the pack with N1.19 trillion, while Lafarge reported the least revenue of N334 billion across the trio of cement manufacturers.
Foreign exchange gains tell a different story. BUA Cement reported the highest gain amounting to N13.01 billion, from N836 million reported in the corresponding period of last year. Followed by Lafarge with N404 million. However, Dangote Cement didn’t report any FX gain during the period under review.
According to the analyst note from BUA Cement, the company’s performance was driven by cost efficiency, reflecting the outcome of management’s earlier strategic alignment, and supported by strong interest income growth and foreign exchange gains.
“Direct cost per tonne declined for the second consecutive year, down 2.1 percent year-on-year, underscoring sustained cost control and operational efficiency. Total cost, including selling, distribution, and administrative expenses, rose marginally by 1.9 percent to N175.8 billion from N172.5 billion in Q1 2025, remaining below the average inflation rate for the period despite global energy shocks arising from geopolitical tensions,” it said.
Dangote Cement, BUA Cement, and Lafarge: Which offers the best value for investors
Nigeria’s cement sector has continued with its strong run, with Dangote Cement, BUA Cement, and Lafarge Africa delivering profit growth in the first three months that significantly outpaced their historical trends.
Leading the pack is Lafarge Africa, with a market value of N5.2 trillion, which delivered the highest return among the three cement manufacturers, rising 138 percent year-to-date. The company’s share price rose from N134.5 in January 2 to N320 as of June 4.
Coming in second is BUA Cement, which has recorded a 112 percent gain since the start of the year. The company’s share price surged from N178.50 on January 2 to N378 as of June 4, driven by strong earnings momentum and expectations that ongoing capacity expansion will support future growth.
Dangote Cement, Nigeria’s largest cement producer by market value and profitability, ranks third in terms of stock market performance, posting a 93.8 percent YTD return. Its share price rose from N609 at the beginning of the year to N1,180 by June 4, reflecting sustained investor confidence in the company’s market leadership and robust cash generation.
Industry outlook remains positive
Nigeria’s cement industry continues to show resilience, driven by sustained demand estimated at around 30 million tonnes annually. The sector’s growth is supported by public infrastructure projects, real estate expansion, and urbanisation across Africa’s most populous nation.
Despite macroeconomic challenges such as high inflation, FX volatility, and high energy costs, the industry’s profitability has remained robust. Cement producers have also benefited from a gradual recovery in construction activity and price adjustments to offset higher input costs.
A bag of cement now costs between N12,500 and N14,000, depending on the location in the country, as the government increases budget allocations to infrastructure projects and a resurgence in domestic demand.
The cement sector in Nigeria grew by 11.53 percent in Q1 2026 compared to 4.12 percent in Q4’2025, according to the National Bureau of Statistics GDP data.
However, the sector is projected to experience significant growth in 2026, driven by strong demand drivers, capacity expansion, and an improving macroeconomic environment.
In Q1, Dangote Cement’s production capacity reached 55 million tonnes per annum (MTA) across Africa.
During the period under review, the company completed 10 clinker shipments from Nigeria to neighbouring markets, further consolidating its position as Africa’s leading cement exporter.
According to the company’s unaudited Q1 2026 financial results, total sales volumes increased by 13.8 percent year-on-year, driven by growth of 11.5 percent in Nigeria and 19.5 percent across its pan‑African operations.
As of September, the company disclosed that it is planning to list 10 percent of its shares on the London Stock Exchange. valued at nearly $13 billion based on its current Lagos Stock Exchange capitalisation.
For Lafarge Africa, it’s Sagamu (3.5MTPA) and Ashaka (2MTPA) plants’ expansion in Gombe and Ogun states, respectively, is progressing well through the phases and is expected to be delivered in Q1 2027.