……Cement maker’s sales climb to N928bn
……expansion of Sagamu, Ashaka plants nears completion ahead of planned Q1 2027 delivery
HBM Nigeria Plc increased its profit after tax by 31 percent to N271.99 billion in the nine months ended September 2026, as stronger sales volumes, improved distribution efficiency, and tighter cost management boosted earnings despite a third-quarter slowdown linked to planned plant maintenance.
The cement manufacturer’s profit after tax rose from N207.78 billion in the corresponding period of 2025, according to its unaudited financial results released on Thursday.
Revenue increased by 18.9 percent to N928.25 billion from N780.49 billion a year earlier, while operating profit advanced 28.2 percent to N382.68 billion from N298.41 billion, reflecting improved operating efficiency and stronger commercial performance.
Profit before tax grew by 32.3 percent to N414.43 billion from N313.29 billion, while earnings per share increased to N16.89 from N12.90, representing a 30.9 percent rise.
The company’s operating margin expanded to 41 percent in the nine months, compared with 38 percent in the corresponding period of 2025, indicating that it retained more operating profit from each naira of sales.
However, the strong cumulative performance contrasted with a weaker third quarter, when planned annual maintenance at existing production facilities weighed on revenue and profitability.
Net sales declined by five percent year-on-year to N249.84 billion in the third quarter from N263.51 billion, while operating profit fell by 13.6 percent to N91.73 billion from N106.14 billion.
Profit before tax dropped 14.8 percent to N96.69 billion from N113.55 billion, while profit after tax decreased 15.3 percent to N63.64 billion from N75.10 billion. Earnings per share fell to N3.95 from N4.66.
HBM Nigeria attributed the third-quarter slowdown to planned maintenance aimed at addressing production constraints and improving access to existing capacity.
“The maintenance work strengthens the reliability and efficiency of our existing assets; as we enter Q4, traditionally a period of stronger demand, we are well positioned to capture the demand now and in the future,” Lolu Alade-Akinyemi, chief executive officer of HBM Nigeria, said.
He said the nine-month results reflected sustained volume growth, improved distribution efficiency and disciplined cost management, adding that the company remained on track to deliver its full-year objectives.
Beyond its earnings performance, HBM Nigeria is advancing capacity expansion projects at its Sagamu plant in Ogun State and Ashaka plant in Gombe State, which are expected to be completed in the first quarter of 2027.
In the company’s earnings release, the Sagamu expansion has a stated capacity of 3.5 million tonnes per annum, while the Ashaka project is designed to add 2 million tonnes per annum.
“The company has also commenced engineering design for a third production line at its Calabar facility, a proposed 3-million-tonne integrated cement plant. Completion is expected within 12 months after construction begins, subject to the project’s development process.
“The projects are expected to strengthen the company’s production footprint and position it to pursue additional sales volumes as demand for cement and construction materials evolves,” the statement disclosed.
HBM Nigeria currently has an installed cement production capacity of 10.5 million tonnes per annum, with operations spanning Ewekoro and Sagamu in Ogun State, Ashaka in Gombe State and Mfamosing in Cross River State. It also operates ready-mix facilities in Lagos, Abuja and Port Harcourt.
The company said Nigeria’s cement demand outlook remained positive, supported by infrastructure development, urbanisation and activity in the construction sector.
It plans to prioritise volume growth, cost control, operational efficiency and margin preservation as it enters the final quarter of the year, while continuing to invest selectively in opportunities aligned with its long-term growth strategy.
The cement manufacturer closed its last trading day on Wednesday at N350 per share on the Nigerian Stock Exchange (NGX). HBM began the year with a share price of N134.50 and has since gained 160 percent on that price valuation, ranking it 12th on the NGX in terms of year-to-date performance.
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Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
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