BUA Cement PBT Down 3.4% on N26.9bn Net Exchange Loss
Kayode Tokede
BUA Cement Plc, yesterday reported N85.75billion profit before tax result and accounts for nine months ended September 30, 2023, a decline of 3.4 per cent from N88.81billion reported in nine months of 2022.
The decline in PBT can be attributable to N26.9billion net exchange loss in nine months of 2023 from N5.26billion in nine months of 2022.
The cement maker on the Nigerian Exchange Limited (NGX), however reported N76.07 billion profit in nine months of 2023, a growth of 2.8per cent from N74.01 billion reported in nine months of 2022, amid reduction in income and deferred taxes to N9.683billion in nine months of 2023 from N14.8billion in nine months of 2022.
Revenue hits N335.86billion in nine months of 2023, a growth of nearly 28 per cent from N262.6billion reported in nine months of 2022.
Analysts have expressed that with the company’s plant expansions at Obu and Sokoto in progess and commissioning during the first quarter (Q1) 2024, the revenue is expected to grow significant.
The company started that once the plants are commissioned, it will bring the total installed capacity to 17 million metric tonnes per annum (mmtpa) from 11 mmtpa.
Speaking recently to shareholders at the company’s 7th Annual General Meeting (AGM), Chairman, Board of Directors, BUA Cement, Abdul Samad Rabiu, said, “As a Company, we remain focused on our strategies, primarily market consolidation as there is no market across the country where our presence is non-existent.
“We, eagerly and excitedly so, await the completion of the Lines 3 and 5 at Obu and Sokoto during the first quarter of 2024. This would enable us provide more quantities of cement to the domestic market and particularly increase our market share across the African continent.”
On his part, Managing Director, BUA Cement, Yusuf Binji said the cement maker remains focused on achieving further revenue and cost synergies, the harmonisation of its marketing strategy across both plants and market consolidation, with the construction of Line 3 in Obu and Line 5 in Sokoto at its core.
“The construction of additional lines at the Sokoto and Obu plants continue as planned, with total installed production capacity to increase to 17 million metric tonnes per annum in 2024.
“We explored the exportation of clinker to neighbouring West African countries with some test shipments made to Burkina Faso and onboarded customers to the integrated payment platform aimed at enhancing our operational,” Binji added.
