…declares N10/share dividend
…says cement prices remain cost reflective
BUA Cement Plc has posted a more than 380 per cent surge in full-year profit for 2025, lifting revenue above the N1 trillion mark, as the company said cement prices will moderate when production and logistics costs ease amid improving foreign exchange stability and declining input pressures.
The performance, announced at the company’s 10th Annual General Meeting in Abuja on Thursday, showed a sharp rebound in earnings despite a volatile operating environment marked by high energy costs, foreign exchange volatility, insecurity and supply chain disruptions.
This comes as shareholders at the meeting approved a total dividend payout of N338.64 billion, representing N10 per share.
Abdul Samad Rabiu, Chairman of BUA Cement, said the results reflected disciplined execution and strategic resilience in a difficult macroeconomic climate.
“In 2025, we delivered a landmark financial performance, underscoring our resilience, strategic agility and alignment and an unwavering commitment to driving progress and delivering value in a complex operating environment,” Rabiu said.
He disclosed that revenue rose to N1.2 trillion, up 34.6 per cent from N876.5 billion in 2024, while profit before tax surged 367 per cent to N465.3 billion from N99.6 billion. Profit after tax climbed 381.7 per cent to N356 billion from N73.9 billion in the previous year.
“These results reflect the strength of our operational execution, disciplined cost management and collaborative and value-based strategies adopted in navigating a year characterised by volatility and transition,” he added.
Rabiu attributed the performance to internal efficiency measures and strategic responses to external shocks, including energy and foreign exchange pressures. He said the company deployed substitution strategies, improved working capital management and strengthened cash flow frameworks to cushion volatility.
While addressing pricing concerns, Rabiu said cement prices remained closely tied to production costs and were not driven by excessive margins. He argued that recent macroeconomic reforms, particularly exchange rate adjustments, were beginning to stabilise the business environment.
“The good news is that things are getting better because of the stability. You see, the price of certain commodities is coming down, especially shipping prices,” he said.
He added that Nigeria’s foreign exchange reforms had improved transparency and predictability in the market.
“Today, whatever rate I get, it’s the same rate anybody gets,” Rabiu said, noting that manufacturers could now plan six to nine months ahead due to improved exchange rate stability.
Rabiu said the company remained committed to cost reduction through energy investments, logistics improvements and local production initiatives. He added that pricing would adjust downward as input costs ease.
“Cement prices will come down when costs come down,” he said.
He also maintained that Nigerian cement prices remained competitive relative to regional markets where the company exports.
Providing further insight into operations, Yusuf Binji, Managing Director and Chief Executive Officer, said the company’s performance was achieved despite significant cost pressures, particularly in energy and foreign exchange-dependent inputs.
“2025 presented volatility particularly in energy costs, import dependent inputs, and foreign exchange markets,” Binji said.
He added, “Yet through rigorous cost management and operational discipline, BUA Cement not only weathered these headwinds but converted them into opportunities for efficiency.”
Binji said one of the key drivers of improved performance was the introduction of solid fuel for the pyro-process at the Obu plant, alongside ongoing investments in a mini-LNG project and bag manufacturing facility, which are expected to reduce exposure to currency fluctuations.
He also noted that the stabilisation of the naira helped reverse previous foreign exchange losses, improving financial planning and restoring predictability in operations.
Binji explained that energy costs account for a significant portion of cement production, making the industry highly sensitive to global and domestic shocks.
“As you know, the price of cement, rightly or wrongly, is a consequence of input costs,” he said.
He revealed that natural gas expenses at one of the company’s plants rose from about N4 billion monthly to N16 billion following exchange rate pressures.
“We were paying close to about N4bn for natural gas every month. At a point, it went up to N16bn a month. It became very difficult to absorb all these costs,” Binji said.
He also cited diesel price escalation, noting that transportation costs had a major impact on final retail prices.
“If you consider that we have to deliver cement to our customers using our own trucks that are using diesel, even the price we are talking about, half of that price of a bag of cement is actually because of transportation,” he said.
Binji tried to dismiss claims that cement was being sold at excessively high prices in all markets, insisting there were regional variations.
“I have the prices from the northern region, and yesterday it was N11,100 a bag. So it is nowhere near the N13,000 or N15,000 a bag that was quoted,” he said.
He said the company remains focused on expansion, disclosing that new production lines in Edo state and Sokoto will add about six million tonnes to annual capacity, bringing total installed capacity to 23 million tonnes by next year.
He added that rising infrastructure demand, including major road projects, continues to support consumption growth, while the company has expanded its logistics capacity with 500 specialised trucks.
“Our major aim is to be able to deliver cement everywhere in Nigeria at affordable prices, and that is what we will continue to do,” Binji stated, in response to a BusinessDay question on whether insecurity in parts of the country has affected raw material sourcing, distribution or expansion plans.