BUA cement’s newly commissioned facility spikes significant increase in profit
According to its unaudited profits report for the period released Friday, Abdul Samad Rabiu’s BUA Cement had significant growth in both top-line and bottom-line for the last quarter, following the opening of its new cement facility this year in January.
The new factory increased the corporation’s nameplate by 3 million metric tonnes per year, boosting sales by 58.5 percent to N97 billion (mtpa).
Other income increased sevenfold to N186 million, owing to insurance claims, which accounted for 88.7% of that income category.
Net finance costs – the money spent on servicing borrowed funds – were cut by as much as 96.5 percent, helping to reduce the burden of revenue spending.
The after-tax profit increased to N33.1 billion, up 48.2 percent from the previous year.
The profit margin was 34.2 percent, implying that the cement manufacturer made a net profit of N34.20 on every N100 spent in the previous quarter.
BUA Cement, Nigeria’s fourth-largest firm by market capitalization, plans to complete two expansion projects by 2023, one in Edo State and the other in Sokoto State, each with a 3 million mtpa capacity.
According to Abdul Samad Rabiu, chairman of the company’s board, this will increase total output capacity to 17 million metric tonnes.
According to BUA Cement’s certified financials for last year, Rabiu, Nigeria’s second richest man and Africa’s sixth according to Forbes, owns 99.99 percent of the company. As of Friday, BUA Cement has an asset value of N783.7 billion and a market value of N2.4 trillion.
On Friday, the company’s shares closed at N70.75 per unit on Lagos’ Customs Street, with little movement.