BUA Cement profit jumps 80% to N324.9bn on cost discipline, new markets
BUA Cement posted a net profit of N324.9 billion for the first half of 2026, an 80% jump from the same period last year, driven by a N16.57 billion foreign-exchange gain and lower financing costs. The company’s net finance costs fell to N3.41 billion from N31.37 billion a year earlier, while finance income rose to N18.73 billion on higher interest earnings. Operating cash flow remained strong at N278.45 billion, supporting dividend payments and a capital-expenditure programme that topped N60.67 billion. Property, plant and equipment rose to N1.22 trillion, with work-in-progress reaching N183.86 billion as BUA expands capacity from 17 million to 20 million tonnes per annum, including a new greenfield plant in Ososo, Edo State. Managing Director Yusuf Binji said cost discipline and growth initiatives are gaining traction and expressed confidence in continued productivity gains.
Why it matters: The profit surge shows how a steadier exchange rate and disciplined cost management can turn foreign-exchange volatility into a tailwind for Nigerian manufacturers. Strong cash generation suggests the firm can sustain dividends and fund further expansion without heavy borrowing, which may influence investor sentiment and cement pricing trends.
What should you know or do? If you hold BUA Cement shares or consider investing, monitor how the company deploys its N60bn capex and whether the new Edo plant comes online on schedule. For businesses that rely on cement, stronger cash flow could mean more stable supply and pricing. Keep an eye on naira stability, as future FX swings could reverse these gains.