BUA Cement's Profit Surges Over Five Times on Foreign Exchange Gains

BUA Cement, Nigeria's second-largest cement producer, reported a remarkable surge in its bottom line, with its profit before tax increasing over five times in the nine months ending September 30, 2025. The company posted a profit after tax of N289.86 billion in 2025, marking a 492% increase from N48.97 billion in the corresponding period in 2024.

The primary driver of this profit surge was the substantial net exchange gain of N21.63 billion recorded in 2025, a significant improvement from the N57.44 billion loss in 2024. BUA Cement's revenue also saw a notable increase of 47.2%, reaching N858.73 billion in 2025.

The company's success was attributed to strong cement demand, coupled with price adjustments to mitigate domestic inflation. Despite a slower growth in cost of sales, BUA Cement achieved a substantial gross profit of N429.26 billion, representing a 137.4% increase.

Operating leverage further expanded the operating profit to N365.62 billion, a 165.3% rise. However, this was partially offset by a 165.6% increase in net finance costs to N46.15 billion, primarily due to higher interest rates on the company's borrowings.

BUA Cement disclosed that its operating profit and working capital had significantly increased, showcasing the underlying strength of its core business. The company faced challenges with major outflows of working capital, resulting in a significant decrease in trade payables and contract liabilities.

BUA Cement utilized a large portion of its operational cash flow to settle outstanding obligations with suppliers and deliveries to customers.