BUA Cement’s full-year Profit Climbs to N90bn Amid 23% Sales Rise

Nigeria’s second biggest cement manufacturer on Wednesday, posted a one-quarter rise in profit after tax for 2021, with increased sales from its Nigerian operation stoking the growth, the audited financial statements of .

BUA Cement’s Revenue for the period enlarged 23 per cent to N257.3 billion from a year earlier, 99.1 per cent of that coming from its home market Nigeria, where it upped capacity by 3 million metric tonnes per annum through its Sokoto plant this January.

Pre-tax came to N102.9 billion, 30.4 per cent higher when set beside the figure for the preceding year, while net profit advanced by 24.5 per cent to N90.1 billion. That helped earnings per share up from N2.14 to N2.66.

Profit margin stood at 35 per cent, meaning the company made a profit of N35 for every N100 sales during the year. That compares with the 34.5 per cent for the year before.

On the expenditure side, operating costs, which imply the expenses incurred by the company in the everyday running of its business, jumped to N19.3 billion from N15.2 billion partly on account of surge in administrative expenses.

BUA Cement hopes to scale up its total capacity to 20 million mt come year end, the proposed delivery time for expansion projects in Edo and Adamawa states, where new plants of 3 million mt each are expected to be completed.

The cement-maker is controlled by Abdul Samad Rabiu, Africa’s fifth richest man by Forbes estimate, who holds 99.98 per cent of the company’s shares, according to the newly released earnings report posted on the Nigerian Exchange’s website.