BUA shows resilience, records 33% revenue increase despite COVID
… rewards employees with N2bn share bonus
Despite prevailing economic headwinds and the impact of the Coronavirus (COVID-19) pandemic, BUA cement emerged resilient in its financial performance for 2020 after recording a revenue increase of 33 percent YoY.
The cement maker who is a big player in Nigeria’s cement industry grew its revenue from N157.5 billion in 2019 to N209.4 billion in the year under review. The growth in revenue was primarily driven by the income from the sale of its bagged cement which contributed 99.7 percent of the total revenue with N209 billion.
The firm’s profit before tax grew by 19 percent to N78.8 billion from the N66.2 billion realized in 2019, while its total profit increased by 19 percent moving from N60.3 billion in 2019 to N71.5 billion in the year under review.
BUA’s other income grew by 650 percent to N375 million from N50 million recorded in 2019, this increase stemmed majorly from its Amortisation of government grant.
However, the manufacturer’s cost of sales increased to N113 billion in 2020 from N93 billion in the previous year representing a 22 percent increase. Its Energy cost increased by 19 percent to N43 billion from N36 billion in the previous year while its raw materials sourcing cost N9.9 billion, a marginal one percent decrease from the previous year.
Following the company’s impressive performance, AbdulSamad Rabiu, largest shareholder and Chairman, BUA announced a share bonus gift for employees of the company worth almost two billion Naira in recognition of their effort to keep the company profitable despite the pandemic and predictions of a tough year.
“As we head into another year of record profits, this share bonus for our employees is only the right thing to do. By doing so, our core employees are better placed to benefit from BUA Cement’s future successes which they continue to help deliver”, Rabiu said.