BUA, Nigeria’s second- largest cement maker by market value grew profit by 16.3 percent in 2020 despite weak construction activities caused by the prolonged lockdown period. The cement maker’s profit surged to N70.5 billion in 2020, up from N60.6 billion in 2019.
Revenue for cement sales also jumped 19 percent to N209.4 billion during the period compared to N175.5 billion in 2019.
However, sales cost was up 22.5 percent to N114 billion from N93 billion in 2019. This came on the back of the mounting energy cost which jumped 28 percent to N46.6 billion. Despite the surging sales cost, gross profit jumped 15 percent to N95.4 billion from N82.4 billion in the periods under review.
Operating profit which is profit from a firm’s core business operations, excluding deductions of interest and tax increased 15 percent to N82.5 billion in 2020 from N71.4 billion the year before. The company’s impairment write back dropped 68.2 percent to N1.19 billion from N3.75 billion in 2019.
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Net finance cost plunged 33.9 percent to N3.43 billion in 2020 from N5.19 billion in 2019. The cement maker’s profit before tax grew 19 percent to N79 billion in 2020 from N66.2 billion a year before. Income tax credit plunged 51.9 percent to N8.54 billion from N5.62 billion in the period under review.
Earnings per share grew 16 percent to N208 per share in 2020 from N179 per share in 2019. Administrative expenses dropped 9.8 percent to N9.47 billion to N10.5 billion in the periods under review.
BUA’S selling and distribution cost surged by 7.62 percent to N12.7 billion compared to N11.8 billion in 2019.
In 2020, other income rose 5.5 percent to N8.0 billion compared to N7.58 billion the previous year.
In Q4’ 20, BUA’S profit plunged 3.4 percent to N16.7 billion compared to N17.3 billion in Q4’19. Revenue was up 14.9 percent during the period to N52.9 billion from N46 billion the previous year.
Cost of sales jumped 9.3 percent to N29.2 billion in Q4’20 from N26.7 billion in Q4’19. Gross profit surged 22.8 percent to N23.7 billion from N19.3 billion in 2019.
In the last three months of 2020, earnings per share plunged to N50 per share compared to N51 in the last three months of 2019.