Olufemi Adeyemi 

BUA Cement experienced a significant decline in its pre-tax profit during the second quarter of 2024, marking a drop of 54% compared to the previous quarter.

Essential financial indicators encompass:

  • Revenue: N202.8 billion, reflecting a 76.80% increase YoY;
  • Cost of sales: N138.4 billion, up 134.83% YoY;
  • Gross profit: N64.3 billion, a 15.42% increase YoY;
  • Administrative expenses: N6.6 billion, soaring by 388.46% YoY;
  • Pre-tax profit: N18.8 billion, down 54.00% YoY;
  • EPS: N0.48, a decline of 55.96% YoY.

BUA Cement has published its financial results for the second quarter of 2024, indicating a pre-tax profit of N18.8 billion.

This figure marks a significant decline of 54.00% compared to the N40.9 billion profit recorded in the same quarter of 2023.

The company's revenue experienced a remarkable increase of 76.80% year-over-year, rising from N114.7 billion in the previous year to N202.8 billion in the second quarter of 2024.

Despite this revenue growth, BUA Cement's earnings per share decreased by 55.96% in comparison to the prior year.

The substantial rise in revenue led to a corresponding increase in the cost of sales, which surged by 134.83% year-over-year, amounting to N138.4 billion in the second quarter of 2024.

The company also reported a 15.42% year-over-year increase in gross profit.

However, the significant rise in administrative expenses, which escalated by 388.46% YoY from N1.3 billion in the previous year to N6.6 billion in Q2 of 2024, placed considerable strain on the pre-tax profit.

Consequently, the pre-tax profit fell by 54.00% year-over-year, decreasing from N40.9 billion in Q2 of 2023 to N18.8 billion in Q2 of 2024.

In a statement released in July 2024, Mr. Yusuf Binji, the Managing Director and Chief Executive Officer of BUA Cement, attributed the decline in pre-tax earnings to the challenging business environment in Nigeria.

He elaborated that the increase in operational costs, driven by the devaluation of the naira and rising inflation, contributed significantly to this downturn.

The company's earnings per share plummeted by 55.96% year-on-year, decreasing from N1.09 in the second quarter of 2023 to N0.48 in 2024. Currently, BUA Cement's shares are trading at N143.20 on the Nigerian stock exchange.