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BUA Cement Plc reported a profit after tax of N69.45 billion for the financial year ended December 2023, representing a 31.2% decline year-on-year.
In comparison to the N101.01bn profit realized in 2022, this signifies a decline of 31.2%.
In 2023, BUA Cement lost N69.95 billion in foreign exchange, while in 2022, it only lost N5.50 billion.
Like many other Nigerian manufacturing companies, BUA Cement was negatively impacted by the depreciating value of the naira, which resulted in higher expenses for imported machinery and supplies.
According to BUA, the foreign exchange loss relates to “the portion of the exchange losses arising from foreign currency borrowings eligible to be capitalized as part of the borrowing costs for capital projects” under construction.
The foreign loan to BUA Cement is estimated to be worth $291.1 million. It was approved on April 27, 2023, for a period of nine years by the IFC, Deutsch Investitions, African Development Bank, and African Finance Corporation.
Principal repayments are suspended until 2025, and interest is due semi-annually at a variable rate equal to 6.months term SOFR+5.5%. December 2032 will mark the facility’s maturity.
The share price of BUA Cement closed at N150 per share, unchanged despite the decline in profits.
