…as revenues rise by 19% to N209billion
Lagos, 14 Feb., 2020.
BUA Cement, Nigeria’s second largest cement company, has announced full year revenues of N209billion in its unaudited 2020 Full Year financial accounts representing an increase of 19% from the corresponding period in 2019. The company also announced a 16% increase in gross profits to N95.4billion in 2020 from N82.4billion Naira in 2019. This further consolidates BUA Cement’s position as one of Nigeria’s most profitable companies – a position it is expected to strengthen further with the commissioning of its new 3 million Metric Tonnes Sokoto Cement Plant in 2021 and the addition of 3 new lines of 9 million metric tonnes total capacity in Adamawa, Edo and Sokoto States by 2023 for which it recently signed an agreement with Sinoma CBMI. This is expected to bring BUA Cement’s total capacity to 20million metric tonnes per annum upon completion.
According to various analysts, the strong performance by BUA Cement in its 2020 Full Year unaudited results was testament to its focus on efficiency, a strong management team, excellent cost management measures and newer, technologically advanced plants.
Speaking recently, the Managing Director, BUA Cement Plc., Engr. Yusuf Binji, said that BUA Cement’s exceptional performance in the 2020 Financial Year, is a reflection of the continued value and strength of the BUA Cement brand and product offerings as well as a nod to the excellent implementation of the company’s Business Continuity Plan which ensured that BUA Cement was able to withstand the impact of the pandemic throughout 2020. In an earlier statement, Binji said that, “despite the prevailing economic conditions in 2020, BUA Cement remains quite optimistic about the future because it affords us not only with the opportunity to further evolve our business model but also provides an opportunity for accelerated development. We will continue to push to new markets aided by a focused distribution strategy.” The company increased its net revenues by 19% to N209billion, with sales volumes up 13% by about 600,000tons to 5,100,232 tons in 2020. Operating profits increased to N82.5billion whilst PAT rose to N70.5billion from N60.6billion in the corresponding year. It should be noted that BUA Cement in 2020 entered strategic alliances for the supply of Liquefied Natural Gas (LNG) at its Kalambaina Plant, Sokoto State, and for the management of its mining operations. Given these deliberate and strategic choices amongst other cost management efforts, it is expected that BUA Cement will continue to combine development and innovation into its offerings and activities to drive efficiency, reduce operating costs and maximize profits.
In a recent interview, Chairman of BUA Cement, Abdul Samad Rabiu said that despite the strides made in the Nigerian Cement Industry in the past few years, there was still room for immense growth. According to Rabiu, Nigeria with its population of about 200million people was still greatly underserved by the Cement Industry with current consumption levels at about 130 kilogrammes per head compared to smaller African countries with consumption levels at about 170 to 180kilograms per head. Nigeria’s cement consumption is expected to increase to about 200kilograms per head in coming years which is one of the reasons why BUA Cement is ramping up its investments in new plants to be able to meet this potential demand as well as take advantage of regional export opportunities through the African Continental Free Trade Area (AfCFTA) agreement which came into effect in 2021.
BUA Cement is the second largest Manufacturing and Cement Company listed on the Nigerian Stock Exchange with its Headquarters based in Lagos, Nigeria. The company also operates 4 plants in Edo and Sokoto States with its key markets in the South-East, North-West and North East Nigeria. The Company recently completed Nigeria’s largest corporate bond offering ever of N115billion Naira which was oversubscribed to the tune of N137.82billion.