BUA Cement, one of the key players in Nigeria’s cement market has recorded a growth in its profit margin despite economic disorder affecting productive and commercial activities.
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In its recently released financial report for the first quarter of 2020, the cement giant recorded a gross profit of N24 billion representing an increase of 14.2 percent from the N21 billion recorded in the corresponding period of 2019.
Similarly, the firm’s profit before tax grew by 17.6 percent to N20 billion from the N17 billion realized in 2019, while its profit after tax stood at N19 billion representing an increase of 26.6 percent from the N15 billion realized in the previous year. The firm’s other income grew by 100 percent to N2.2 billion from N1.5 billion recorded in 2019, this increase stemmed majorly from its haulage income on goods delivery.
However, the firm’s energy cost increased by 24.7 percent to N10.6 billion, its raw materials sourcing cost N11 billion while it spent N4.8 billion on fuel
Since the entry of BUA into Nigeria’s cement market, the industry has experienced significant expansion. Less than six months after commissioning its 1.5million metric tonnes per annum Kalambaina Cement Plant in Sokoto State, BUA has Cement completed its newest Obu plant in Edo State, which has a capacity to churn out three million MT annually of cement annually. This brings the total capacity of BUA Obu cement operations to six million tonnes and move the entire group’s installed capacity to eight million MT per annum.
BUA Cement plc is a business combination of CCNN Plc ( Sokoto Cement) and BUA Cement Manufacturing Company’s Obu Cement Company, which was completed in January 2020 and is currently listed on the Nigerian Stock Exchange (NSE), with a market capitalisation of N1.18 trillion ($3.3 billion), making it the third most capitalised company on the floor of the Nigerian bourse as well as the second largest producer of building material. At the close of trading activities on Monday, the company stock price’s stood at N41 per share.
