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BUA Cement Nigeria Plc has enjoyed solid revenue growth as sales spiked by 27.42 percent to N460 billion in December 2023, from N360.98 billion as at December 2022.T
The company’s top line growth has been difficult to ignore over the last several years, which validates it’s ability to achieve scaling efficiencies and generate continuous shareholders’ value even amid challenging economic conditions.
BUA Cement’s business performance sustained by strong brand attributes, volume growth and price adjustments.
Despite rising input costs caused by unreliable electricity from the grid, shortage of gas supply, and foreign exchange revaluation loss brought on by abrupt devaluation of the currency, company grew earnings before interest taxation, depreciation, and amortization, (EBITDA) 9.6 percent to N169.3 billion from N154.5 billion in 2022.
As a result of inflationary pressures, currency volatility and energy crisis, the cement maker saw production costs spike by 39.14 percent to N276.04 billion as at December 2023.
“Clearly, the operating environment in 2023 was challenging, given the different headwinds confronted at the start of the year and especially with the devaluation of the Naira. During the year, we launched the maiden edition of the BUA Cement Scratch and Win promo., among other initiatives,” said Yusuf Binji, managing director/ CEO of BUA Cement Plc.
“In addition, we could commission the new 3mmtpa lines at the Sokoto and Obu Plants, activate a new 70MW gas power plant in Sokoto and eagerly await the activation of the 70MW gas power plant at Obu during the first quarter of 2024. Apart from these, we took delivery of over 500 trucks to support our distribution activities, which further deepened our market presence,” said Binji.
The sharp depreciation of the Naira since last year has exposed Nigerian companies to foreign exchange revaluation loss as BUA Cement also booked N69.95 billion in exceptional loss, but the company remained profitable enough to pay dividend to its shareholders who have confidence in its growth potential and ability to deliver consistent returns in the form of bumper dividend and share appreciation.
The board of directors of the company have recommended for the approval of shareholders a payment of N2.00 dividend per 1 ordinary share of 50kobo each, out of the profits declared in the financial year ended 31 December 2023 (2022: N2.80k).
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