BUA Cement’s N40bn FX loss drags down half-year profit

BUA Cement Plc reported a decline in its profit before tax for the first half of this year as its foreign exchange loss widened to N39.98 billion from N2.14 billion in the same period of 2023.

The country’s second-largest cement maker saw its pretax profit fall to N40.13 billion from N76.42 billion in H1 2023, according to its unaudited financial statements. 

Its revenue increased by 64.6 percent to N363.94 billion. 

BUA Cement’s cost of sales (adjusted for depreciation) increased by 131.8 percent to N244.20 billion.

This surge was primarily driven by significant growth in operation and maintenance service charges, energy costs, and materials,” analysts at CSL Research said. “We attribute these cost increases to elevated inflationary pressures and a sharp devaluation of the currency, both of which have substantially raised the company’s expenses.”