BUA Cement Explains N72bn Profit

The Managing Director/CEO, BUA Cement Plc, Yusuf Binji, has said the resilient performance of the company in 2020 was due to well instituted contingency plan, which ensured that they remained largely immune to economic disruptions such as production, supply and distribution shocks resulting from the lock down.

He added that shift by investors to alternative asset classes and the low rain fall recorded during the year also assisted, adding that, “More importantly, our product offerings played a vital role, with more customers being increasingly able to appreciate and differentiate how tailored our products are towards meeting their cement requirements, especially in terms of quality and product support, among other features.”

According BUA Cement performance for the year 2020 witnessed a 13.3 per cent rise in cement dispatched to 5.1mmt, which resulted in a 19.3 per cent rise in revenues to N209.4 billion.

He said driven by the need to prioritise efficiency led by innovation, a continued focus on cost containment measures and despite the devaluation of the naira, which impacted pricing of some input costs, operating profit increased by 14.8 per cent to N82 billion.

Consequently, Profit after Tax (PAT) increased to N72.3 billion, from N60.610 billion in 2019.

The directors recommended a dividend of N2.067 per share, showing an increase of 18 per cent above the N1.75 dividend paid in 2019.

Binji said: “In line with our goals to become the leading cement manufacturer with significant eco-friendly footprints, we set out key strategic targets to enhance growth and transform our operational processes towards a cleaner and more efficient company.

“We are delighted to have achieved a significant number of these set targets including the construction of the Kalambaina line-3, where we remain on course to commission the plant in 2021.”