BUA Cement Posts 19% Revenue Growth, Sales Volumes Rise To 5,100,232tons

Nigeria’s second-largest cement company, BUA Cement Plc, has announced full-year revenues of N209billion in its unaudited 2020 Full Year financial statements representing an increase of 19% from the corresponding period in 2019.

Highlights:

• Revenue rise 19% to N209billion (FY2020)
• Gross Profits increase by 16% to N95.4billion (FY2020) from N82.4billion Naira (FY2019)
• PBT rise by 19% to N79.06billion (FY2020) from N66.23billion (FY2019)
• Sales Volumes rise to 5,100,232tons (FY2020) from 4,501,150tons (FY2019)

The company also announced a 16% increase in gross profits to N95.4billion in 2020 from N82.4billion in 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.

As a result, this will shoot BUA Cement’s total capacity to a ton of 20million metric tonnes per annum upon completion.

Bua Cement Financial Statement

Meanwhile, Bua Cement’s strong performance in its 2020 Full Year unaudited results could be aligned with a focus on its efficiency, a strong management team, excellent cost management measures and newer, technologically advanced plants.

According to the Managing Director, BUA Cement Plc., Engr. Yusuf Binji said “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.”

Moving further, 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.

Similarly, its 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.

BUA Cement is listed as the second-largest Manufacturing and Cement Company on the Nigerian Stock Exchange (NSE) 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.

Bua Cement Bond

Interestingly, the second-largest Manufacturing and Cement Company recently completed Nigeria’s largest corporate bond offering ever of N115billion Naira which was oversubscribed to the tune of N137.82billion.