HBM Nigeria Plc recorded a 32.4% enhance in pre-tax profit to N414.43 billion for the 9 months ended September 30, 2026, in contrast with N313.29 billion within the corresponding interval of 2025, supported by decrease finance costs and improved working margins.
This is in accordance to the firm’s unaudited third-quarter monetary statements filed with the Nigerian Exchange (NGX), which confirmed income rising by 18.9% to N928.25 billion from N780.49 billion.
Profit after tax elevated by 30.9% to N271.99 billion from N207.78 billion, whereas earnings per share rose to N16.89 from N12.90.
Finance costs fall 63.2%
HBM’s pre-tax profit grew quicker than income in the course of the nine-month interval, supported by stronger margins and a major discount in financing bills.
Operating profit elevated by 28.2% to N382.68 billion from N298.41 billion, whereas web finance earnings greater than doubled to N31.75 billion from N14.88 billion.
- Finance costs declined by 63.2% to N1.98 billion, largely as a result of lease curiosity fell to N655 million from N3.77 billion.
- Finance earnings elevated by 66.4% to N33.73 billion, whereas curiosity earnings on deposits doubled to N34.40 billion.
- Gross profit rose by 21.8% to N555.60 billion, lifting gross margin to 59.85% from 58.44%, whereas working margin improved to 41.23% from 38.23%.
- Cement income elevated to N901.43 billion from N759.62 billion, accounting for roughly 97% of complete income.
- Production costs rose by 14.9% to N372.65 billion, under income progress, though mounted manufacturing and upkeep costs elevated by 30.4% and 50.9%, respectively.
Selling and distribution bills declined by 5.9% to N110.32 billion, whereas administrative bills elevated by 41.4% to N63.33 billion, together with N21.73 billion in technical service charges.
The enchancment lifted HBM’s pre-tax margin to roughly 44.6% from 40.1%, regardless of larger administrative and production-related costs.
Q3 Pre-Tax Profit falls 14.8%
HBM’s third-quarter efficiency contrasted with its stronger nine-month outcomes, as pre-tax profit declined by 14.8% to N96.69 billion from N113.55 billion within the corresponding interval of 2025.
- Quarterly income declined by 5.2% to N249.84 billion, whereas cement income fell by 6%, reflecting weaker gross sales in the course of the interval.
- Gross margin narrowed to 53.55% from 60.86%, as manufacturing costs elevated by 12.5% regardless of the decline in income.
- Maintenance bills greater than doubled to N28.79 billion from N13.25 billion, including strain to quarterly profitability.
- Profit after tax declined by 15.3% to N63.64 billion, in contrast with the corresponding quarter of 2025.
- Selling and distribution costs fell by 37.9%, whereas finance costs declined by 68.5%, serving to cushion the affect of decrease income and better manufacturing costs.
- For the nine-month interval, earnings tax expense elevated by roughly 35% to N142.44 billion, lifting the efficient tax fee to 34.37% from 33.68%.
The tax expense included a N17.84 billion improvement levy, contributing to the slower progress in after-tax profit in contrast with pre-tax earnings.
The quarterly outcomes present that decrease financing and distribution costs have been inadequate to offset weaker income and better upkeep bills.
Management cites deliberate upkeep, growth tasks
HBM Nigeria attributed its weaker third-quarter efficiency partly to deliberate annual upkeep at present crops. The firm mentioned the work was meant to tackle manufacturing constraints and enhance accessible capability.
- In a assertion accompanying the monetary outcomes, General Counsel and Company Secretary Adewunmi Alode mentioned the nine-month efficiency mirrored quantity progress, improved distribution effectivity, and disciplined price administration.
- Management mentioned the upkeep programme was designed to strengthen the reliability and effectivity of present belongings. It additionally expressed confidence in capturing stronger demand within the fourth quarter, historically a stronger interval for cement consumption.
- The firm added that growth tasks at its Sagamu plant in Ogun State, with capability of three.5 million tonnes each year, and Ashaka plant in Gombe State, with capability of two million tonnes each year, have been at a complicated stage.
- Both tasks are anticipated to be delivered within the first quarter of 2027, in accordance to the corporate.
- HBM additionally commenced engineering design for a 3rd manufacturing line at Calabar, Cross River State. The proposed facility is a 3-million-tonne built-in cement plant, with completion anticipated inside 12 months after development begins.
Management mentioned Nigeria’s cement demand outlook remained constructive, supported by infrastructure improvement, urbanisation, and exercise throughout the development sector.
The firm mentioned it might proceed pursuing quantity progress whereas sustaining price self-discipline and operational effectivity to defend profitability and margins.
Dividends exceed working money circulation
HBM’s cash-flow place mirrored considerably larger capital expenditure and dividend funds in the course of the nine-month interval.
Operating money circulation elevated to N272.31 billion from N235.76 billion, however dividends paid rose to N354.37 billion from N96.65 billion, exceeding each working money circulation and nine-month profit after tax.
- Capital expenditure on property, plant and gear elevated to N235.02 billion from N53.40 billion, lifting property, plant and gear to N650.03 billion.
- Investing actions recorded a web money outflow of N200.62 billion, in contrast with N36.16 billion within the corresponding interval of 2025.
- Cash and money equivalents declined by 73.5% to N102.96 billion, whereas retained earnings fell to N422.54 billion from N504.92 billion.
- Total belongings rose by 0.9% to N1.22 trillion, whereas shareholders’ funds declined by 11.9% to N611.61 billion.
- The firm reported no financial institution borrowings on the finish of September, though present liabilities of N504.06 billion exceeded present belongings of N384.95 billion.
HBM’s share value closed unchanged at N350 on October 28, 2026, representing a year-to-date acquire of roughly 160% and a market capitalisation of about N5.64 trillion.
With the inventory already recording substantial good points, traders can be monitoring whether or not quarterly margins get well and whether or not the corporate can maintain capital expenditure and dividend funds with out additional lowering its money place.
