BUA Cement Plc reported an 80% year-on-year increase in profit to N324.9 billion for the first half of 2026, supported by foreign exchange gains, lower finance costs, and robust operating cash flows.
The cement manufacturer recorded a net foreign exchange gain of N16.57 billion during the six-month period, compared with N782.8 million in the corresponding period of 2025. The performance marks a significant turnaround from the N9.70 billion foreign exchange loss recorded for the full 2025 financial year, reflecting a more stable exchange rate environment after the sharp currency volatility experienced over the past two years.
The improved currency position contributed to a sharp decline in net finance costs, which fell to N3.41 billion from N31.37 billion in the first half of 2025, despite the company’s sizeable borrowings. Finance income also climbed to N18.73 billion, driven by higher interest earned on cash balances.
BUA Cement continued to demonstrate strong cash-generating ability, with net cash from operating activities rising to N278.45 billion. The company maintained healthy cash flows even as it paid substantial dividends and continued investing heavily in expanding production capacity.
Capital expenditure exceeded N60.67 billion, with most of the investment directed toward property, plant, and equipment. As a result, the value of the company’s property, plant, and equipment increased to N1.22 trillion, up from N1.18 trillion at the end of 2025.
Construction work-in-progress also rose to approximately N183.86 billion, underscoring the scale of the company’s ongoing expansion projects.
According to its earnings report, BUA Cement is advancing plans to increase installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes per annum, including the development of a greenfield cement plant in Ososo, Edo State.
Commenting on the performance, Managing Director and Chief Executive Officer Yusuf Binji said the company remained focused on unlocking growth opportunities while maintaining strict 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 programmes were beginning to deliver results, adding that ongoing process improvements are expected to enhance productivity and strengthen cost efficiency in the coming quarters.
“I am very encouraged by our outlook and performance over the next quarters,” he added.