BUA Cement Records N16.5bn FX Gain, Net Profit Jumps 80% To N324.9bn
BUA Cement Plc recorded an 80% surge in net profit to N324.9 billion for the first half of 2026. This performance was largely driven by strict cost discipline, expansion into new markets, and a substantial recovery in foreign exchange transactions.
The cement giant recorded a net foreign exchange gain of N16.57 billion during the first half of 2026. This, interestingly, represents a massive turnaround compared with the N782.8 million recorded in the same period last year and the N9.70 billion foreign exchange loss suffered across the full 2025 financial year.
This marked reversal reflects a relatively more stable exchange rate environment following the sharp currency adjustments experienced over the previous two years.
Consequently, the improvement helped slash overall net finance costs to just N3.41 billion, down from N31.37 billion in the corresponding period of 2025, despite the company continuing to carry substantial borrowings. Finance income also increased sharply to N18.73 billion, supported by higher interest earned on bank balances.
The Cement manufacturer continued to generate significant cash flows while simultaneously paying substantial dividends and investing heavily in capacity expansion.
Net cash generated from operating activities stood at N278.45 billion, demonstrating the business’ strong cash conversion capability. Capital expenditure reached over N60.67 billion, largely invested in property, plant, and equipment (PPE) as the company aggressively expands production.
The cement brand’s Property, plant and equipment increased to N1.22 trillion from N1.18 trillion at the end of 2025. Construction work-in-progress alone rose to about N183.86 billion, highlighting the scale of ongoing infrastructure projects.
Earnings note revealed BUA Cement is progressing with plans to expand its total installed production capacity from 17 million metric tonnes per annum (MTPA) to 20 million MTPA. This includes the construction of a greenfield cement plant in Ososo, Edo State.
Commenting on the financial performance, Yusuf Binji, Managing Director and Chief Executive Officer, said the company remains focused on capturing new growth opportunities while maintaining cost discipline.
“We have delivered a strong quarter despite the constraints encountered,” Binji said.
He noted that the company’s growth initiatives and cost optimization programs are gaining traction. He expressed confidence that ongoing process improvements would deliver higher productivity and tighter cost management in the coming quarters.
“I am very encouraged by our outlook and performance over the next quarters,” Binji added.
