BUA Cement H1 Revenue Outpaces Profit, On 114.58% Tax Expense Growth

Building materials making giant, BUA Cement Plc, on Monday published its financials for the half-year ended June 30, 2022, highlights of which include the faster growth in revenue than profit, just as selling and distribution costs soared by N4.565bn, or 130.59%, added to the 114.58% increase in tax expense increase.

According to the result, sale revenue for the period rose by N62.283bn, or 50.12 percent from N124.277bn, to N188.561bn; while cost of sales stood at N97.057bn, up by N31.346bn, or 47.38% from N66.157bn to N97.503bn; driven mainly by the N43.58bn energy cost, almost double the previous half-year’s N26.466bn; and the N28.009bn materials’ cost. Gross profit stood at N91.057bn, up from N58.12bn.

Other income increased to N200.137m from N72.576m, the bulk of which was the N170.401m insurance claims, which rose from N21.12m. Selling and distribution costs grew from N3.496bn to N8.06bn, driven by the N5.43bn distribution cost, which leaped from N1.581bn; while administrative expenses increased from N4.172bn to N5.46bn, with staff cost accounting for N1.214bn, from N1.193bn; resulting in operating profit of N77.736bn, which improved from N50.524bn.

Net finance cost jumped to N2.845bn from N824.111m, with interest expenses accounting for N3.222bn from N931.123m; exchange rate stood at N1.053bn, up from N295m; while interest income jumped from N402.01m to N1.431bn.

Profit before tax stood at N74.891bn from N49.7bn; while income and deferred taxes jumped from N6.304bn to N13.527bn, with deferred taxes rose from N11.803bn, up from N5.612bn; while income tax soared from N691.704m to N1.723bn. Net profit for the period rose from N43.395bn to N61.363bn, translating to basic earnings per share of N1.81, compared to the previous N1.28 each.

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