NIGERIA – BUA Cement Plc, a leading cement manufacturer in Africa, has declared in its audited financial statement, a 19.4% year-on-year growth in profit to N72.34 billion (US$176.51m) for the financial year of 2020, compared to last year’s figure of N60.34 billion (US$147.23m).
The double-digit growth in profit was a testament to the cement maker’s focus on efficiency, excellent cost optimization strategies, newer technologically advanced plants, and lastly the strong growth in revenue which was driven by the rising demand for cement.
BUA Cement’s revenue expanded by 19.33% in 2020, this growth in revenue was the highest among other cement manufacturers in 2020, as the company’s revenue growth of 19.33% beats, Dangote’s 16%, and Lafarge’s 8.3% year-on-year growth.
The Cement maker spent a total of N127.12 billion (US$310.18m) on the purchase of property, plant, and equipment in 2020.
Revenue generated from the sale of bagged and bulk cement grew by 19.33%, driven by 19.52% growth in the sales of bagged cement, while revenue generated from the sales of bulk cement declined by 32.59%. The company’s profit surged by 19.4% year-on-year to N72.34 billion (US$176.51m).
The Board of BUA Cement Plc proposed a N2.067 kobo per share dividend, driven by the increase in profits and cash flow generated from operations. BUA’s net cash flow generated from operations soared by 146.09% year-on-year to N65.11 billion (US$158.87m).
The Cement maker spent a total of N127.12 billion (US$310.18m) on the purchase of property, plant, and equipment in 2020. The company in 2020 was able to increase its revenues by more than 19% to N209 billion (US$509.97m), with sales volumes climbing up by more than 13%. This translates to about 600,000 tons to 5,100,232 tons in 2020.
BUA Cement Plc is Nigeria’s second-largest cement company, its impressive 2020 financial performance is a reflection of the continued value and strength of the brand and product offerings as well as a testament to the cement maker’s focus on efficiency, excellent cost optimization strategies, and newer technologically advanced plants.
All these ensured that BUA Cement was able to weather the storm from its operating environment in 2020, which was stirred by the COVID-19 pandemic.
Elsewhere, BUA Cement during the year y applied to the Nigerian Investment Promotion Commission (NIPC) for a pioneer status for its Production Line 2 in Kalambaina, Sokoto State and an extension for its existing pioneer status on the Okpella Production Line 1 located in Edo State.
The pioneer statuses were approved on 26 February 2020 covering a three-year and a two-year period respectively.
As a result, no current income tax has been accrued on the pioneer profits in the year and consequently, the N171.3 million (US$0.42m) arising from minimum tax computations is included in the charge for the year on the statement of financial position but above the line in the statement of profit or loss and other comprehensive income for the year.
Meanwhile, the cement manufacturer has proposed N2:067k in dividends to shareholders which will be payment 24 hours after its annual general meeting (AGM) on July 22, 2021.
BUA Cement is the fourth largest listed entity on the Nigerian Stock Exchange, with a market capitalization in excess of N2.4 trillion (US$5.86bn).
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