BUA Cement posted a sharp improvement in its foreign-exchange position in the first half of 2026, reporting a net foreign exchange gain of N16.57 billion versus a much smaller gain of N782.8 million in the same period of the prior year. For the full 2025 financial year, the company recorded a net foreign exchange loss of N9.70 billion, highlighting how quickly currency-related results have swung as market conditions changed.
Foreign-exchange turnaround and lower finance burden
The company said the reversal largely reflects a comparatively steadier exchange-rate environment that emerged after the steep currency adjustments seen in the preceding two years. As that FX backdrop improved, BUA Cement’s overall net finance costs fell to N3.41 billion in the first half of 2026, down from N31.37 billion in the corresponding period of 2025—even as the firm continued to hold substantial borrowings.
Alongside lower finance costs, finance income rose substantially to N18.73 billion, supported by higher interest earned on cash balances. Together, those movements helped lift the company’s financial performance despite the ongoing impact of debt financing.
Cash generation, dividends, and heavy investment
BUA Cement also underlined its ability to generate cash from operations, stating it continued to produce significant operating cash flows while paying large dividends and pursuing an aggressive capacity expansion programme. Net cash generated from operating activities reached N278.45 billion, indicating strong cash conversion.
Investment spending remained high. Capital expenditure climbed to more than N60.67 billion, with the majority directed toward property, plant and equipment as the company pushes to expand production capacity. The value of property, plant and equipment increased to N1.22 trillion from N1.18 trillion at the end of 2025, reflecting continued investment in production assets and projects still under construction.
- Net cash from operating activities: N278.45 billion
- Capital expenditure: over N60.67 billion
- Property, plant and equipment: N1.22 trillion (from N1.18 trillion at end-2025)
- Construction work-in-progress: about N183.86 billion
Capacity expansion plans and management outlook
BUA Cement said it is progressing with plans to raise installed production capacity from 17 million metric tonnes per annum to 20 million metric tons. The expansion includes the construction of a greenfield cement plant in Ososo, Edo State.
In comments accompanying the results, Yusuf Binji, managing director and chief executive officer, said the company is focused on capturing new growth opportunities while keeping cost discipline. He described the first half performance as a “strong quarter” despite constraints faced during the period.
Binji added that the company’s growth initiatives and cost optimisation programmes are gaining traction and that continuing improvements in processes are expected to translate into higher productivity and tighter cost management in the coming quarters. He concluded by saying the outlook and performance for the next quarters are encouraging.
