BUA Cement Plc has reported an 80 per cent increase in profit after tax for the first half of 2026, posting earnings of ₦324.9 billion, driven by improved foreign exchange performance, stronger finance income and sustained operational efficiency.
The company's unaudited financial results showed a significant turnaround in its foreign exchange position, recording a net foreign exchange gain of ₦16.57 billion during the six-month period, compared with a gain of ₦782.8 million in the corresponding period of 2025. This contrasts sharply with the ₦9.70 billion foreign exchange loss reported for the full 2025 financial year.
The improved performance reflects a more stable exchange rate environment following the sharp currency volatility experienced over the past two years.
As a result, BUA Cement's net finance costs declined substantially to ₦3.41 billion, down from ₦31.37 billion recorded in the first half of 2025, despite the company maintaining significant borrowings. Finance income also rose sharply to ₦18.73 billion, supported by increased interest earned on cash balances.
The cement manufacturer continued to generate robust operating cash flows while maintaining investments in business expansion and shareholder returns.
Net cash generated from operating activities stood at ₦278.45 billion, underscoring the company's strong cash-generating capacity. During the period, capital expenditure exceeded ₦60.67 billion, with the bulk of the investment directed toward property, plant and equipment as part of its ongoing capacity expansion programme.
Consequently, the value of the company's property, plant and equipment increased to ₦1.22 trillion, up from ₦1.18 trillion at the end of the 2025 financial year. Construction work-in-progress also rose to approximately ₦183.86 billion, reflecting continued investment in new production facilities.
According to the company's earnings report, BUA Cement is advancing plans to increase its installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes per annum, including the development of a new greenfield cement plant in Ososo, Edo State.
Commenting on the financial performance, Managing Director and Chief Executive Officer, Yusuf Binji, said the company remained committed to driving growth while maintaining strict cost discipline.
"We have delivered a strong quarter despite the constraints encountered," Binji said.
He added that the company's growth initiatives and cost optimisation programmes were beginning to yield positive results, expressing confidence that ongoing operational improvements would enhance productivity and further strengthen cost efficiency in the coming quarters.
"I am very encouraged by our outlook and performance over the next quarters," he said.
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