BUA Cement FX Losses Surge 31.7% To N92.1bn

BUA Cement Plc has reported a significant increase in foreign exchange losses for the 2024 fiscal year, amounting to ₦92.105bn, a 31.7 per cent rise from the N69.956bn recorded in 2023.

The increase is attributed to the depreciation of the naira and rising inflation, which impacted business operations across various sectors.

By the end of 2024, the naira had depreciated to N1,535 per US dollar, a sharp decline from N907.1 per US dollar as of December 31, 2023.

This depreciation, coupled with rising inflation—which peaked at 34.8 per cent in December 2024 and averaged 33.2 per cent for the year—significantly increased operational costs and reduced consumer purchasing power.

The Central Bank of Nigeria raised the Monetary Policy Rate (MPR) multiple times throughout the year, reaching 27.5 per cent in an effort to stabilize the naira and curb inflation, further increasing the cost of borrowing.

BUA Cement noted that, like many other companies, it was not immune to the currency volatility that defined 2024. The company attributed its N92.1bn foreign exchange loss to loans obtained for its production expansion before the devaluation of the naira.

Despite these economic challenges, BUA Cement reported a strong financial performance.

The company’s audited financial statements for 2024, obtained by THE WHISTLER, showed that revenue more than doubled from N460bn in 2023 to N876.5bn in 2024.

Profit before tax rose to N99.6bn, up from N67.2bn, while profit after tax increased to N73.9bn from N69.5bn in the previous year.

Speaking on the overall performance, the Managing Director/ CEO, Yusuf Binji said: “Indeed, we are pleased with this performance because of the various headwinds we had to contend with from the turn of the year. More notable, was the further depreciation of the Naira, which impacted our cost profile – operating and financing, and our slow start to the year.

“Our slow start was due to the customer backlog resulting from the October 1, 2023, price cut, which delayed our ability to adjust pricing amid the Naira’s depreciation. In spite of the slow start, our quality and support offerings continue to endear us to customers, enabling us to surpass our volume figures for 2023 and attaining a record high.

“To address the issue of rising costs, we have adopted certain measures. I am confident that the benefit of the measures taken will record positive outcomes from 2025.

“During the year, we commissioned the two new 3 million metric tons lines at Obu (Obu line 3) and Sokoto (Sokoto line 5), which aided the increase of product supply across the country.

“Furthermore, we undertook the groundbreaking ceremony for a 3 million metric tons greenfield cement plant (Ososo line-1) in Edo State. We are delighted with the launch of all of these projects because it affords us the opportunity to address growing cement needs within the country.”

BUA Cement FX Losses Surge 31.7% To N92.1bn is first published on The Whistler Newspaper