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

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.