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Thursday, March 23, 2023

Growth of Conglomerates Like BUA Group Evidence of Our Policies Working – Buhari

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Leading Nigerian Businessman, Industrialist, and Philanthropist, Abdul Samad Rabiu, paid a visit to President Muhammadu Buhari in Abuja, to update him and to thank him for creating an enabling environment for business to thrive, and also brief him on the strides BUA Group has made in the past few years.

Thereafter, Rabiu briefed the President on the activities of his foundation, The Abdul Samad Rabiu Africa Initiative (ASR Africa) during which he also announced the donation of a N10billion Nigeria Security Support Fund from ASR Africa towards the provision of some security equipment, medical and other supplies, upgrade of health facilities and other infrastructure for families of those on the frontlines.

According to Rabiu, the visit was in order to identify with President Muhammadu Buhari, during whose tenure BUA has built over 10 factories with two of the Group’s subsidiaries now amongst the top 10 largest publicly listed companies in Africa, and to further support the efforts of his administration in business as well as in the security space.

In his response, President Buhari said it was heartwarming to see and hear of Nigerian companies doing so much within Nigeria, and Africa, especially in the area of production using locally available raw materials.

He also expressed his elation at the achievements of BUA which had led to phenomenal growth within such a short time.

“As a Government, we know we have done a lot in this regard, and we will continue to do more to support the aspirations of serious businesses, big and small, by providing an enabling environment as well as supporting value creation within Nigeria.”

BUA Cement Plc, the second-largest cement producer in Africa’s largest economy that is aggressively expanding operations across the country, has seen net income surge on the back of volume expansion.

For the first six months through June 2022, BUA Cement’s net income spiked by 34.25 percent to N28.22 billion in June 2022 from N21.03 billion as at June 2021.

The company has been consistently growing earnings since it went public a few years ago  and shareholders have been getting steady dividends, which makes the stock an allure of investors who crave for rich stocks to add to their portfolios.

It is making money from core operations as operating income was up 42.14 percent to N35.35 billion in the period under review from 24.87 billion the previous year.

Analysts at Afrinvest Securities in a recent note to client said that BUA Cement’s strategy for the future is geared toward capturing new markets including exports, harmonizing sales and marketing efforts across its two plants to drive revenue & cost synergies, and shifting the energy mix in favour of cost-effective and greener sources.

Its revenue spiked by 45.16 percent to N91.57 billion in June 2022 from N63.08 billion the previous year.

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