BUA Cement Plc reported unaudited Half Year (H1) 2024 results showing a 46.3% year-on-year (YoY) decline in earnings.
This was driven by a significant 121.5% YoY increase in cost of goods sold (COGS) and a material FX loss that masked the topline growth.
Revenue grew by 64.6% YoY to N363.9 billion in H1 2024, driven by higher prices and likely improved volumes, considering the lower base from disruptions in the first half of the previous year.
However, COGS surged by 121.5% YoY, largely due to a 171.6% increase in energy costs, which squeezed the gross profit margin by 18.0ppts to 30.0%.
Net operating expenses grew by 42.5% YoY due to higher distribution and staff costs.
Combined with a modest gross profit growth of 3.0%, the EBIT margin contracted to 22.5% (vs. 39.3% in H1’23).
Net interest expense declined by 87.1% YoY, boosted by a substantial 4.4x rise in interest income to N9.8 billion, as the company benefited from the elevated interest rate environment. However, the company recorded an FX loss of N40 billion, significantly pressuring the PBT margin to 11.0% (vs 34.6% in H1’23).
The effective tax rate moderated to 14.6% (vs 16.8% in H1’23) as the company benefited from pioneer incentives on its Kalambaina line 4 plant, as well as its newly commissioned Obu line 3 and Kalambaina line 5 plants, which helped ease bottom-line pressure. Consequently, EPS declined by 46.3% YoY to N1.01.
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 2024 results showing a 46.3% year-on-year (YoY) decline in earnings.){kind=link}