BUA grows profit to N209.4bn in 2020

09 Jul BUA grows profit to N209.4bn in 2020

BUA Cement Plc on Thursday announced an increase in revenue by 19.3 per cent to N209.4 billion in 2020 compared to N175.5 billion in 2019.

Presenting the statement of accounts of the firm to its shareholders at the 5th Annual General Meeting (AGM) of the firm, the Executive Chairman, Abdul-Samad Rabiu, said BUA experienced growths in all performance indices, despite the destabilising effects of the COVID-19 pandemic.

While revenue grew by 19.3 per cent in the year under review, the Chairman said volume sales rose to 5.1 million tons, as Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased by 18 per cent to N96.8 billion from N81.9 billion in 2019.

“With EBITDA margin being resilient at 46.2  per cent, we also recorded 19.4 per cent growth in Profit After Tax (PAT) to N72.3 billion and 19.6  per cent rise in Earnings Per Share (ESP) to N2.14 from N1,79 as at 2019”.

“In view of our sustained performance, the board has recommended for your approval a dividend of N2.067 per ordinary share”, he informed BUA’s shareholders.

The chairman announced plans to commission additional production lines, to raise the   firm’s current cement capacity of   11 metric tons per annum in 2021 to 20 metric tons per annum by 2022.

According to him, the addition of new lines to the existing ones, is a strategy to tame the country’s sustained demand for cement, which leads to exhorbitant prices to the detriment of builders and potential homeowners.

He said that efforts were on for the commissioning of Kalambaina line-3, which, according to him, will add 3mmtpa to the existing 8mmtpa in 2021.

Rabiu admitted that an increase in the number of cement producers in the country would mean more competition for him — but interests of the country and that of its people are paramount.

He urged the federal government to licence more cement manufacturers with a view to meeting local demand.

“The high price of cement is of great concern for me; the price is actually high. We are 210 million or 220 million people, 30 million tonnes of cement per annum is actually low for us,” Rabiu said.

“No one can really control the price because it depends on demand and supply. We are trying hard to ensure the price is not as high as it is now.

“Nigeria is growing with a huge economy; we need more plants on stream to cater to the rising demand of cement in the country.

“Egypt produces 85 tonnes of cement per annum and the demand of cement in that country is just 50 million tonnes per annum and that is why prices of cement in Egypt are the lowest on the African continent.’’