BUA Cement grows revenue by 27.4 % in 2023—Management

Management of BUA Cement Plc has said that it recorded revenue growth of 27.4 per cent in 2023. The company also said its net revenue rose to N460 billion from N361 billion in 2022. The Chairman, Board of Directors of the company, AbdulSamad Rabiu, disclosed this facts on Thursday in Abuja, at its 8th Annual General Meeting (AGM). According to Rabiu, the company also improved its capacity utilisation to 61.2 per cent in 2023 from 59.8 per cent in 2022, due to an increase in cement volumes dispatched. He said that the increase in volumes dispatched also resulted in an increase in market share. He, however, said that profit after tax declined by 31.2 per cent due to foreign exchange losses.

“Furthermore, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose to N169 billion from N155 billion recorded in the prior year. Though, profit after tax declined by 31.2 per cent to N70 billion from N101 billion recorded in the corresponding period in 2022. This was impacted by foreign exchange losses, which arose from the devaluation and the continued depreciation of the Naira, ” he said. The board chairman said that, despite the reduction in the company’s bottomline, it is committed to shareholder value. He announced a dividend of two Naira per share for the year ended Dec. 31, 2023 to be distributed to shareholders. Rabiu said that the operating environment within the period was challenging as global growth declined to 3.2 per cent in 2023 from 3.5 per cent recorded in 2022.

“Conversely, global inflation peaked at 6.8 per cent in 2023. Across Sub-Saharan Africa, economic growth declined to 3.3 per cent relative to the 4.0 per cent recorded in 2022, driven majorly by global slow down, weather shocks and supply-side issues,” he said. He said that the company would continue to implement and pursue its strategic goals of expansion and increasing market share. He said that it would also explore solutions that will enable it to sustain value creation for its shareholders and other stakeholders. The Managing Director of the company, Yusuf Binji, said that the major challenges faced during the year arose from the currency redesign policy of the Central Bank of Nigeria (CBN). Bjnji said that the 2023 general elections and foreign exchange volatilities also created major challenges.

“Like every manufacturing business, some of our inputs are dollar-denominated, and with the devaluation and continued depreciation of the Naira, we recorded rising energy and other raw materials cost. Also, the depreciation of the Naira led to the revaluation of existing liabilities on the balance sheet, which resulted in an exchange loss of N70 billion,” he said. According to him, the company was still able to manage its negative shock, declare a profit and, most importantly, preserve shareholders’ fund.