By Goddy Egene
The hopes of shareholders of BUA Cement Plc to receive robust dividend
at the end of the current final year have been raised by the
improved results recorded by the company for the nine months ended
September 30, 2020.
BUA Cement, which is one of Africa’s largest cement producers reported
a revenue of N156.55 billion in 2020, showing an increase of21 per
cent from N129.429 billion in the corresponding period of 2019.
Gross profit rose from N63.123 billion to N71.729billion. Selling and
distribution expenses rose from N8.341 billion to N9.679billion, while
administrative expenses rose from N6.103 billion to N7.034billion.
The company was able to reduce its net financing cost by 23 per cent
from N3.719 billion to N2.874 billion. This enhanced the profitability
as profit before tax (PBT) grew by 19 per cent to N59.484 billion from
N50.186 billion. Profit after tax (PAT) grew faster by 24 per cent
fromN43.253 billion to N53.567 billion.
When the company recorded a similarly improved performance for the
half year endedJune 30, 2020, the Managing Director of BUA Cement,
Yusuf Binji, had said that the continued impressive performance in
2020 despite the challenging operating environment occasioned by the
covid-19 pandemic, was a pointer to the value and strength of the BUA
Cement brand and product offerings as well as a nod to the excellent
implementation of the company’s Business Continuity Plan which ensured
that BUA Cement was able to withstand the impact of the pandemic in
the period under review.
“In a bid to further drive cost efficiencies and sustainability, we
entered into strategic alliances for the supply of Liquefied Natural
Gas (LNG) at the Kalambaina, Sokoto State and the management of our
mining operations. Given these deliberate and strategic choices
amongst other cost management efforts, we continue to combine
development and innovation into our offerings and activities,” Binji
According to him, in spite of the prevailing economic conditions, “we
are 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.”
Meanwhile, the stock market surged further as the Nigerian Stock
Exchange (NSE) rose 1.58 per cent to close at 29,437.60, while market
capitalisation added N239 billion to close at N15.4 trillion.