by Abdul Samad Rabiu BUA cement It posted appreciable growth in both revenue and results during the latest quarter, according to its unaudited earnings report for the period issued on Friday, after its new cement factory opened this year in January.
Sales accelerated 58.5 percent to N97 billion, the new plant raising the corporation’s mark by 3 million metric tons per year (mtpa).
Further bolstering earnings, other income increased sevenfold to N186 million, thanks to insurance claims, which contributed 88.7 per cent to that class of income.
Management cut off the network financial costs – cash spent on servicing borrowed funds – up to 96.5 percent, which helps to lighten the burden of spending on revenue.
Profit after tax rose to N33.1 billion, 48.2% higher than the previous year.
The profit margin stood at 34.2 per cent, which, in other words, suggests that the cement maker made a net profit of 34.20 naira for every 100 naira it spent last quarter.
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BUA Cement, Nigeria’s fourth largest company by market capitalization, is aiming to deliver two expansion projects, one in Edo state and the other in Sokoto state, each with a capacity of 3 million mtpa in 2023.
Abdul Samad Rabiu, president BUA Cement
That will bring total production capacity up to 17 million metric tons, company chairman Abdul Samad Rabiu said in January.
Rabiu, who is the second richest man in Nigeria and the sixth richest in Africa by forbes estimate, owns 99.99 percent of BUA Cement, according to the company’s audited financial statements from last year. BUA Cement is worth N783.7 billion in terms of assets and N2.4 trillion in market value as of Friday.
The company’s shares closed on Aduana de Lagos street on Friday at N70.75 per unit, without registering any movement.