Details of the financial performance showed that BUA Cement recorded revenue of N175.518 billion in 2019, up from N119.013 billion in 2018. Cos of sales jumped from N59.060 billion to N93.075 billion in 2019. Gross profit stood at N82.443 billion in 2019, compared with 59.952 billion in 2018.
- Revenue grew by 47.5% to N175.5bn from N119bn in the previous quarter.
- Profit before tax grew by 69.1% to N66.2bn.
- Profit after tax declined by 5.4% to N60.6bn.
- Net Assets grew by 17.8% to N363.7bn from N308.6bn.
The company managed to contain administrative expenses from N12.522 billion to N10.516 billion in 2019. However, distribution and selling expenses soared from N6.081 billion to N11.844 billion in 2019.
Operating profit printed at N71.428 billion in 2019, up from N42.842 billion in 2018. Net financing cost increased from N3.675 billion to N5.192 billion.
Profit after Tax (PAT), down 5.40% from N64.07 billion in 2018 to N60.61 billion in 2019, due to a tax credit of N26.76 billion in 2018 from pioneer status incentive (3-years) granted on Obu line-1 in 2019, reversing previous tax provision for the years.
Based on the performance, the board has recommended a dividend of N1.75 per share.
When the company was listed early this year, the Managing Director of BUA Cement, Yusuf Binji, said the company was poised to add even more value to the Nigerian economy as a whole through this listing.
Speaking on the result, the Managing Director, Yusuf Binji gave further insights into the performance of the Company:
“Despite the complexities and uncertainty that trailed the economic environment in 2019, we delivered on important strategic priorities, such as the commissioning of our 3mmtpa Line-2 at our Obu Plant in March 2019; the merger completion between CCNN Plc and Obu Cement Company Limited and commenced the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the Nigeria Stock Exchange (NSE), with the eventual delisting of CCNN Plc.
Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins.
Going forward, our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” both locally and outside Nigeria. We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy”.
Meanwhile, the stock market sustained its positive performance yesterday as the NSE All-Share Index (ASI) gained 1.09 per cent to close at 24,202.87. Similarly, market capitalisation added N100.4 billion to close at N12.6 trillion.
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