BUA Cement Grows Profit by 12% to N101bn
- BUA Lost N5.5bn to Exchange Rate Movement
- Declare N2.80 as Dividend in 2022
- Profit Spikes 12% in 12-month
Driven by an increase in sales of bagged and bulk cement without exposure to a single customer, BUA Cement Plc.’s profit for the financial year 2022 spiked by 12% amidst a slowdown in economic growth in Nigeria. The cement company’s profit rose from N97.079 billion to N101.01 billion, the company said in its audited financial statement.
Amidst the plan to increase dividend payment, BUA cement’s share price settled at N99.45 in the stock market on Friday with a market valuation of N3.367 trillion over 33.864 shares outstanding – more than 56% of this is owned by its chairman, Abdul Samad Rabiu.
In 2022, BUA earnings per share (EPS) from continuing operations rose to N2.98 from N2.66 delivered in the comparable year 2021.
Detail from the regulatory filing indicated that the Board of Directors recommends for the approval of shareholders a payment of N2.80k dividend per ordinary share of 50 kobo each. Detail from the company’s audited financial report showed that sales revenue printed at N360.989 billion from N 257.327 billion reported in the financial year 2021.
Of the sum, local sales of bagged and bulk cement accounted for 98.79% of the aggregate revenue or N356.609 billion or while sales outside Nigeria generated N4.379 billion in revenue.
The cement company’s costs of sales jumped more than 41% to N197.944 billion in 2022 from N136.390 billion in the comparable period. Adjusted for direct cost, gross profit spiked 34.8% to N163.044 billion in 2022, from N120.936 billion 12-month earlier.
In the period, the company’s wide overhead expenses increased, according to its audited statement. Its audited statement provided that the company’s distribution and selling expenses grew more than double in 2022, rising from N8.187 billion in 2021 to N18.811 billion 12-month after.
The massive increase in the expenses line was driven by a rise in distribution costs, up from N4.125 billion in 2021 to N13.088 billion. At the same time, BUA cement administrative expenses increased by 55% to N17.299 billion from N11.158 billion in the comparable period. BUA said it lost more than N5.5 billion to exchange rate movement.
Higher net finance costs impacted the company’s bottom line. Though, BUA Cement pre-tax improved to N120.154 billion from N102.873 billion. In the period, the company’s net finance costs increased to N8.611 billion from N1.085 billion in 2021.
At the end of the financial year 2022, BUA Cement Plc.’s total assets expanded by about 20% year on year to N874 billion, up 12% from N728.507 billion in 2021.
