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BUA Cement Grows Profit by 25% as Abdul Samad Rabiu Receives N86 Billion in 2021

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BUA Cement Chairman - Investors King

One of Nigeria’s largest cement manufacturers, BUA Cement grew profit after tax by 24.51% from N72.344 billion in 2020 to N90.079 billion in the financial year ended December 2021.

The leading manufacturer disclosed this in its 2021 audited financial statement obtained by Investors King.

Revenue for the year expanded by 22.86% to N257.327 billion from N209.443 billion filed in the corresponding period of 2020. As expected, the cost of sales rose 19.69% to N136.403 billion. This puts the company’s gross profit at N120.924 billion, representing a 26.65% increase.

An increase in administrative expenses and distribution costs dragged on the company’s earnings in the period under review. BUA Cement’s operating profit stood at N104.225 billion, still a 27.06% growth from N82.022 billion achieved in 2020.

Finance costs, however, remain exceptionally high at N1.706 billion and N3.837 billion in 2021 and 2020, respectively. Finance income was N620.604 million in 2021, down from N859.618 million realised in 2020.

The company grew profit before tax to N102.873 billion, a 30.43% increase from N78.873 billion recorded in 2020.

BUA Cement paid N12.794 billion in income and deferred tax for the period. Earnings per share inched slightly higher at N2.66 from N2.14 in 2020.

Abdul Samad Rabiu, the Chairman of the company, owned direct and indirect shares of 33.264 billion in BUA Cement Plc, out of a total of 33.268 billion issued shares.

The company declared and paid a N2.6k dividend per 1 ordinary share of 50 kobo each in the 2021 financial year. Therefore,  the Chairman earned N86.487 billion in dividends in 2021.

It should be recalled that earlier in the year, Investors King reported that Abdul Samad’s net worth rose by N420 billion after listing BUA Food on the Nigerian Exchange Limited.

This was after carrying out an insider dealing that created the needed scarcity that spurred growth in the new listed stock by an astonishing 65% within a week.

The billionaire owned 89.85 percent or 16,172,851,967 shares of BUA Food Plc.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant

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Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

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Merger and Acquisition

Access Bank Acquires Indirect Stake in Sigma Pensions

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Access bank

Access Holdings on Friday announced it has completed the acquisition of an indirect equity stake in Sigma and the merger of its subsidiary, First Guarantee Pension Limited (FGPL) with Sigma.

According to the bank, following the sanction of the Scheme of Merger between Sigma and FGPL by the Federal High Court on December 1, 2022, FGPL has been dissolved without winding up leaving Sigma as the surviving entity, according to Access Holdings.

Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of the Corporation, said “Following the successful completion of the merger, our plan is to leverage the synergies of these entities, as well as the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

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Company News

Dangote Group Dismisses Rumours of Plan to Rise Cement Price

Dangote Cement says no price increase

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Africa’s leading cement producer, Dangote Cement Plc has dismissed the rumor that it plans to increase the price of its products.

The clarification became necessary following a recent publication that Dangote Cement plans a fresh increase.

Recently, there has been some publication (Not Investors King) about a potential increase in the price of cement. The publications noted that the increase will be a result of the high cost of fuel among other prevailing issues. 

According to the Senior Manager, branding and communication, Dangote Industries Limited, Mr Sunday Esan, “Dangote Cement is not embarking on a price increase”, stating that the increase is mere speculation.

Meanwhile, Dangote Cement in the third quarter of 2022, recorded an increase in the overall volume of cement sales by 6.2 percent to 20.8 metric tons in the third quarter of 2022.

According to the company’s Chief Executive Officer, Michel Puchercos, this was achieved, despite the elevated inflation caused by a very volatile global environment.

Similarly, while speaking on the increase in the price of fuel, Puchercos said “to mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels”.

“We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage,” he added. 

Investors King understands that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. Although it has a few competitors which include BUA Cement, the company supplies most parts of Nigeria.

In addition, Dangote Cement has operations in 10 African countries. 

Its production plant in Obajana, Kogi state, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta.

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