- BUA Cement Grows Revenue By 47.5% to N175.52bn in 2019
BUA Cement on Wednesday announced a 47.5 percent increase in revenue for the 2019 financial year.
In the Financial Statements released through the Nigerian Stock Exchange (NSE), the company’s revenue rose to N175.52 billion in the year while profits for the year rose by 69.1 percent from N39.17 billion filed in 2018 to N66.24 billion in 2019.
The second-largest cement company in Nigeria has a market capitalisation of N1.18 trillion or $3.3 billion, making it the third most capitalised company on the Nigerian Stock Exchange.
Financial Highlights
- Revenue increases by 47.5% from N01 billion in 2018 to N175.52 billion in 2019
- EBITDA rises 47.2% from N70 billion in 2018 to N81.99 billion in 2019
- EBITDA margin flat at 47.0%, arising from entry into ‘new markets’
- Operating margin (EBIT) is up 4.71% points from 36.0% in 2018 to 40.7% in 2019
- Profit before Tax (PBT), up 69.1% from N17 billion in 2018 to N66.24 billion in 2019
- Profit after Tax (PAT), down 5.40% from N07 billion in 2018 to N60.61 billion in 2019, due to a tax credit of N26.76 billion in 2018 from pioneer status incentive( 3 years) granted on Obu line-1 in 2019, reversing previous tax provision for the years
Operational Highlights
- Cement volume dispatched was up 53.2% from 2,940 kt in 2018 to 4,501 kt, as at 2019; arising from increased capacity
- Merger between CCNN Plc and Obu Cement Company Limited, yielding revenue and cost synergies
- Kalambaina plant, Sokoto State (Line 2) goes online for first full year in 2019; Obu Cement Plant, Edo State (Line 2) commissioned in March 2019
- Return on Asset (ROA) up from 16.7% (2018) to 17.7% (2019)
- Entry into new markets aided by value-oriented strategy
Speaking on the result, Managing Director of BUA Cement, Yusuf Binji said, “Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across: pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins. This is Despite the complexities and uncertainty that trailed the economic environment in 2019. We delivered on important strategic priorities, such as: the commissioning of our 3mmtpa Line-2 at our Obu Plant in March, 2019; the merger completion between CCNN Plc and Obu Cement Company Limited and commenced the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the Nigeria Stock Exchange (NSE), with the eventual delisting of CCNN Plc.
“Going forward, our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” both locally and outside Nigeria. We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy.”
In his comments Acting CFO, Chike Ajaero said, “In 2019 we reported a decline in Profit after Tax (PAT) from N64.07 billion in 2018 to N60.61 billion which was due to income tax credit of N26.76 billion in 2018 from reversal of previous tax provision made on Obu Line 1 and deferred tax credit on securing approval for tax exemptions under pioneer status incentive in 2019. Net deferred tax charge of N5.15 billion was provided for in the current year and actual tax payable of N475.29 million. Obu Line-1 and Kalambaina Line -2 are both on pioneer status approved in February 2020 for 2-years (extension) and 3-years respectively. The computation of Earnings per Share (EPS) for 2018 has been re-stated, to reflect a business combination under common control, as at January 2018”.
