HBM Nigeria Slides as Investors Sell the Earnings, Dividend News
In a sell-the-news reaction, HBM Nigeria Plc lost about 4% of its market value as investors trimmed holdings despite a half-year 2026 earnings beat and an interim dividend.
Investors exited positions despite HBM Nigeria reporting a 57.0% year-on-year increase in earnings per share to N12.93.
The cement company’s earnings growth was driven by revenue expansion that outpaced cost increases, further supported by a sharp increase in net finance income.
The company fell from its 52-week high of N389.90 per share to N375.10 as 8.631 million units valued at N3.240 billion were traded on the domestic bourse on Wednesday.
With the heavy trading volume led by sell-side actors, the company lost N14.80 on each of its 16.107 billion outstanding shares on the Nigerian Exchange.
Pre-earnings bet had lifted HMB Nigeria share price from N349.50 to an all-time high of N389.90 during the week, and then profit takers pulled the plug on the cement stock– resulting in a N238.4 billion reduction in market value.
HMB delivered a strong performance in H1 2026, with revenue rising by 31.2% year-on-year (y/y) to N678.4 billion from N517.0 billion in H1 2025. The strong topline performance was supported by broad- based growth across all business segments.
Cement revenue increased by 31.2% y/y to N661.5 billion, aggregates and concrete revenue grew by 34.8% y/y to N16.2 billion, while revenue from other products rose by 11.9% y/y to N646.8 million.
Overall, the robust revenue performance reflects a combination of higher sales volumes and price increments during the period.
HMB Nigeria’s cost of sales grew at a slower pace than its revenue, increasing by 16.0% year on year to N256.6 billion in H1 2026 from N221.2 billion in the corresponding period of 2025.
The combination of strong revenue growth and relatively moderate cost expansion drove a significant improvement in profitability.
Profit Before Tax advanced by 59.1% to N317.7 billion in H1 2026, up from N199.7 billion in H1 2025.
HMB Nigeria net income also grew strongly by 57.0% to N208.3 billion from N132.7 billion in the previous year. Earnings Per Share likewise rose by 57.0% to N12.9, compared to N8.2 in H1 2025.
The board of directors announced an interim dividend of N16 per unit of ordinary share, subject to deduction of withholding tax, which will be paid to shareholders whose names appear in the Register of Members as at the close of business on Wednesday, 12th August 2026. #HBM Nigeria Slides as Investors Sell the Earnings, Dividend News# Nigerian Naira Softens as NFEM Interbank FX Turnover Plunges
