BUA Cement Plc, Nigeria’s second largest cement maker, has revealed its unaudited results for the first quarter of 2021, declaring a profit of N33.14 billion, up 48.18 percent year on year.
Further examination of the data reveals that the company’s product categories improved during the period, resulting in increased revenue. The period’s revenue increased by 58.50 percent year on year, totaling N96.99 billion.
As revenue from sales of cement, the company’s only revenue segment during the period increased by over 58%, cost of materials similarly appreciated by 66% from N9.14 billion in Q1 2021 to N15.18 billion, in the current period.
The company also made money from interest income earned from investment, raking in a total of N315.63 million. This was however subdued by interest expenses during period, resulting in a Net finance cost of N30.32 million.
BUA Cement Plc, however, grew its other income mainly from Sundry income, and Insurance claims, to increase by a whopping 715.40% to N185.99 million year on year.
Despite the growth in topline revenues, administrative expenses grew by double-digits, subduing bottom-line profit. Selling and distribution expenses grew by over 100%, despite the company’s decline in its advertising and campaign spending. Advertising expenses dropped massively by 88% while distribution costs was recorded as N2.21 billion compared to just N615 million in the prior-year period.
In addition, the company’s total assets are now N783.73 billion, while Net assets rose by 8.32% to N431.26 billion. The company’s long-term borrowings stood at N52.46 billion.
BUA Cement has earnings per share (EPS) for the period was at N0.98, a 48.48% increase from N0.66 in Q1 2021. The company is scheduled to pay its shareholders a total of N2.60 as dividend for the financial year ended 31 December 2021.