BUA Cement Grows Profit by 41.4% N61 Billion in H1 2022

BUA Cement Plc, one Africa’s leading cement manufacturing companies, grew revenue to N188.562 billion in the first half (H1) of the year.

The company disclosed this in its unaudited financial statement obtained by Investors King.

This represents a 51.73% increase from N124.278 billion reported in the first half of 2021. Cost of sales rose by 47.38% to N97.504 billion from N66.158 billion announced in H1 2021.

As expected, gross profit increased from N58.120 billion to N91.058 billion, an increase of 56.67%. Other income more than double from N72.576 million filed in the corresponding period of 2021 to N200.138 million.

Surprisingly, selling and distribution costs rose more than 130% from N3.496 billion to N8.060 billion. Operating profit stood at N77.737 billion, a 53.86% increase from N50.524 billion achieved in H1 2021.

A 245% jump in net finance costs to N2.845 billion dragged slightly on profit before tax in the period under review.

Still, profit before tax rose 50.69% from N74.891 billion in H1 2021 to N49.700 billion.

For income and deferred taxes, BUA Cement paid N13.527 billion to record N61.364 billion profit after tax, a 41.4% growth from N43.396 billion recorded in the same period of 2021.

Earnings per share improved to 181 kobo from 128 kobo in H1 2021.

Meanwhile, earlier today BUA announced plans to borrow money from International Finance Corporation (IFC) to expand Sokoto’s production capacity from 2 million tons per annum (MTPA) to 8 MTPA and other projects.