BUA Cement Plc maintained its debt position at ₦1.2 trillion in 2025, sustaining a highly leveraged balance sheet as the company recorded a sharp rise in profit for the year.
According to its audited 2025 financial statements released on Friday, the cement manufacturer’s total assets increased by 19 per cent to ₦1.9 trillion, up from ₦1.6 trillion in 2024.
More than 60 per cent of the company’s asset base in 2025 is financed by creditors, while shareholders’ equity, representing about 35 per cent of total assets, rose by 73 per cent to ₦673 billion from approximately ₦389 billion in the previous year.
Despite the level of borrowing, the company delivered strong earnings growth, with profit after tax climbing by about 400 per cent to ₦356 billion in 2025, compared with ₦73 billion a year earlier.
For a capital-intensive sector such as cement manufacturing, analysts say a debt-to-asset ratio of 0.6 is considered a fair rating, particularly where profitability is improving and can support interest payment obligations.
However, analysts warn that risks could increase in a high inflation and rising interest rate environment, especially where asset values come under pressure.
BUA Cement’s Board of Directors has proposed a dividend of ₦10.00 per ordinary share for shareholder approval.
“Dividends approved at the Annual General Meeting will be subject to deduction of withholding tax at the applicable statutory rate at the time of payment,” Hauwa Satomi, company secretary, said in her note to directors.
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