BUA Cement profit rises 80% to N324.9bn on expansion drive

BUA Cement Plc posted an 80 per cent surge in profit after tax to N324.9 billion in the first half of 2026, as improved cost discipline, foreign exchange stability and continued expansion into new markets strengthened earnings despite a challenging operating environment.

The cement producer also benefited from a sharp turnaround in foreign exchange performance, recording a net foreign exchange gain of N16.57 billion, compared with N782.8 million in the corresponding period of 2025 and a N9.70 billion foreign exchange loss recorded for the full 2025 financial year.

The improved exchange rate environment significantly reduced the company’s finance burden, with net finance costs declining by almost 89 per cent to N3.41 billion from N31.37 billion a year earlier, despite maintaining substantial borrowings.

Finance income also rose strongly to N18.73 billion, supported by higher returns on cash balances, further boosting profitability.

The strong earnings performance was underpinned by robust operating cash generation, which enabled the company to finance expansion projects while maintaining shareholder returns.

BUA Cement generated N278.45 billion in net cash from operating activities during the six months, reflecting the company’s strong cash conversion capability and resilient underlying operations.

The company invested over N60.67 billion in capital expenditure, mainly on property, plant and equipment, as it accelerated ongoing capacity expansion projects aimed at meeting growing domestic demand and supporting future export opportunities.

Consequently, total property, plant and equipment increased to N1.22 trillion, from N1.18 trillion at the end of December 2025, while construction work-in-progress rose to N183.86 billion, highlighting the pace of ongoing investment.

BUA Cement said it remains on course to increase installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes, including the construction of its new greenfield cement plant in Ososo, Edo State.

Commenting on the performance, the Managing Director and Chief Executive Officer, Yusuf Binji, said the company remained focused on strengthening operational efficiency while pursuing new growth opportunities.

“We have delivered a strong quarter despite the constraints encountered,” Binji said.

He noted that ongoing growth initiatives and cost optimisation programmes were beginning to yield results, adding that continued process improvements would enhance productivity, improve efficiency and sustain earnings growth in subsequent quarters.

“I am very encouraged by our outlook and performance over the next quarters,” he added.

The strong first-half performance reinforces BUA Cement’s position as one of Nigeria’s most profitable manufacturing companies, with sustained investment in production capacity expected to support long-term revenue growth and strengthen its competitiveness within the domestic and regional cement markets.