BUA Cement posts N73.91bn profit

BUA Cement Plc has reported a profit after tax of N73.91bn for the financial year ended December 31, 2024, reflecting a 6.4 per cent increase from the N69.45bn recorded in 2023.

The company’s annual financial statement, released to the Nigerian Exchange Limited recently, showed a jump in revenue to N876.47bn, representing a 90.5 per cent growth from the N459.99bn posted in the previous year.

Despite the revenue surge, BUA Cement grappled with a sharp rise in costs, particularly foreign exchange losses, which soared to N92.1bn, up from N69.96bn in 2023.

In the period under review, finance costs also surged by 201 per cent, reaching N60.04bn, compared to N19.94bn in the prior year.

The company’s gross profit stood at N300.26bn, reflecting a 63.3 per cent increase from N183.96bn in 2023. However, administrative expenses rose to N22.06bn, while distribution and selling expenses increased to N42.86bn.

Further analysis of the financials showed that BUA Cement declared and paid a total dividend of N67.73bn to shareholders during the year under review, compared to N94.82bn paid in 2023.

The cement giant’s total assets expanded to N1.57tn, up from N1.22tn in the previous year. However, its total liabilities also surged to N1.18tn, largely due to a rise in bank borrowings, which climbed to N444.82bn, compared to N295.47bn in 2023.

Despite the financial pressures, BUA Cement’s equity base grew slightly to N388.55bn, reflecting the company’s ability to sustain profitability amid Nigeria’s challenging economic environment.

The company’s earnings per share rose to N2.18 from N2.05 in the previous year, indicating improved returns for investors.

The PUNCH reported that the Chairman of BUA Cement, Abdul Samad Rabiu, has attributed the high cost of cement to the exploitation of consumers by middlemen within the supply chain.