BUA Cement Plc announces profit of N90b Naira

Nigeria’s second-largest cement producer, BUA Cement Plc has released its 2021 audited FY results reporting a profit of N90 billion during the period, representing a 24.51% increase

The company’s result is on the back of an inflationary year, as most businesses and their consumers have had to deal with rising cost of goods and services.

A cursory view of the result reveals the company’s revenue was driven by growth in the company’s product categories. Meanwhile, Revenue growth for the period was at 22.86% year on year.

It was learnt that domestic sales in Nigeria for the period grew by 23%, generating N254.99 billion, while sales outside Nigeria raked in N2.33 billion, reflecting an improvement of 63.42% year on year, compared to its sales in 2020.

The improved performance appears to be driven by higher prices triggered by inflationary pressures, for the most part of the year. As of December 2021, cement prices were around N4,000, as average inflation for the year was 16.98%.

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The company also made money from income earned from fixed deposit investments, raking in a total of N620 million.

BUA Cement Plc, however, grew its other income mainly from grants and loans, rising 599.75% to N2.63 billion year on year.

In addition, the company’s total assets are now N728.51 billion, while Net assets rose by 5.89% to N398.12 billion. The company’s long-term borrowings stood at N43.69 billion.

BUA Cement has earnings per share (EPS) for the period was at N2.66, a 24% increase from N2.14 in FY 2020. The company’s board of directors have recommended the payment of N2.6 kobo as dividend for the financial year ended 31 December 2021.

Upon approval by shareholders, dividends paid to shareholders will be subject to the deduction of withholding tax at the appropriate rate at the time of payment.

BUA Cement Plc last traded at N70.75 per share and has returned 5.52% from year-to-date. Subscribe to the Nairametrics Stock Select Newsletter to view our stock pick.