Monday, June 13,2022

Nigerian cement maker, BUA Cement Plc, has projected to achieve N102.684 billion revenue for third-quarter ending September 2022.

In its forecast of statement of profit or loss and other comprehensive income obtained from the Nigerian Exchange Limited (NGX), the cement firm also projected N50.248 billion as cost of sales for the period

Challenges of insecurity and other high costs of operations attributable to poor infrastructure have also continued to make the business operating environment difficult – especially in the manufacturing sector of the economy.

BUA is also targeting to rake in N42.926 billion as profit before tax and N35.629 billion for profit after tax during the period.

BUA Cement, Nigeria’s second-largest cement producer reported a profit of N33.14 billion during the Q1 2022, representing 48.18% increase Y-o-Y.

Further analysis of the result shows that the company’s product categories improved, driving revenue growth in the period. Revenue growth for the period was at 58.50% year on year, recorded as N96.99 billion.

As revenue from sales of cement, the company’s only revenue segment during the period increased by over 58%, cost of materials similarly appreciated by 66% from N9.14 billion in Q1 2021 to N15.18 billion, in the current period.

The company also made money from interest income earned from investment, raking in a total of N315.63 million. This was however subdued by interest expenses during period, resulting in a Net finance cost of N30.32 million.

BUA Cement Plc, however, grew its other income mainly from Sundry income, and Insurance claims, to increase by a whopping 715.40% to N185.99 million year on year.

In addition, the company’s total assets are now N783.73 billion, while Net assets rose by 8.32% to N431.26 billion. The company’s long-term borrowings stood at N52.46 billion.

BUA Cement has earnings per share (EPS) for the period was at N0.98, a 48.48% increase from N0.66 in Q1 2021. The company is scheduled to pay its shareholders a total of N2.60 as dividend for the financial year ended 31 December 2021.