BUA Cement recorded a net foreign exchange gain of ₦16.57 billion in the first half of 2026, a sharp turnaround from just ₦782.8 million in the same period last year.
The company had also posted a ₦9.70 billion foreign exchange loss for the full 2025 financial year, according to its latest earnings note.
The reversal reflects a more stable exchange rate environment following the sharp currency adjustments Nigeria experienced over the previous two years.
That stability helped cut BUA Cement's net finance costs to just ₦3.41 billion, down from ₦31.37 billion in the same period of 2025, even as the company continues carrying substantial borrowings.
Finance income also rose sharply to ₦18.73 billion, boosted by higher interest earned on the company’s cash balances.
Cash Flow Stays Strong Despite Heavy Spending
Despite paying out large dividends and investing heavily in new capacity, BUA Cement continued to generate significant operating cash flows.
Net cash from operating activities reached ₦278.45 billion, pointing to the company’s strong ability to convert earnings into cash.
Capital expenditure, meanwhile, topped ₦60.67 billion, largely channelled into property, plant and equipment as the company expands production.
Property, plant and equipment rose to ₦1.22 trillion from ₦1.18 trillion at the end of 2025, while construction work-in-progress alone climbed to about ₦183.86 billion.
In addition, BUA Cement is progressing with plans to lift installed production capacity from 17 million to 20 million metric tonnes per year, including a new greenfield plant in Ososo, Edo State.
MD Cites Cost Discipline Behind Strong Quarter
Commenting on the results, Managing Director and Chief Executive Officer Yusuf Binji said the company remained focused on capturing new growth opportunities while keeping costs under control.
“We have delivered a strong quarter despite the constraints encountered,” Binji said.
He said the company’s growth initiatives and cost optimisation programmes were gaining traction, and that ongoing process improvements should deliver higher productivity and better cost management in coming quarters.
“I am very encouraged by our outlook and performance over the next quarters,” he added.
BUA Cement is one of Nigeria’s two dominant cement producers, alongside Dangote Cement, and is listed on the Nigerian Exchange.
