BUA Cement Nets N53.57bn 9-Month Profit, To Issue Bond

BUA Cement Plc last week presented its unaudited result for the nine-month ended September 30, 2020, reporting growth in top and bottom-lines, with sales revenue growing by 20.95% to N156.6bn, from N129.4bn in the corresponding period of 2019.

According to the filing to the Nigerian Stock Exchange (NSE), Profit After Tax grew by 24% to N53.57bn from the corresponding period in 2019, in what the company said was due to a growing appreciation of its product offerings. Earnings per Share (EPS) therefore increased from N1.28 in Q3’2019 to N1.58.

Commenting on the company’s performance during the period, Engr. Yusuf Binji, the managing director/Chief Executive, acknowledged the positive growth in sales despite the impact of the COVID-19 pandemic on the populace and economy; the expected resilience of the private sector and a short rainyseason.  

A statement by the company quoted Binji as saying the board has concluded plans to issue bonds to boost working capital in view of ongoing expansions, while taking “advantage of the low interest rate environment, in addition to the discontinuance of funding sources through related-parties transactions.”

This, he said, is in line with the decision reached at our last Annual General Meeting (AGM) in October.

He described the score-card asvery heartwarming and resilient, “underpinned by the continued quality that characterizes the BUA Cement productofferingsas we see more end-users able to differentiate the attendant benefits of using our products. Expectedly, we witnessed a resurging demand from a resilient private sector – within and outside Nigeria, as the lockdown was eased, coupled with a short rainy season: despite flooding in some parts of Nigeria and Niger.

“During the period, we fulfilled our commitment to build sustainable communities by successfully relocating community members from Gidam Bailu and Gidam Datti to Girabshi, a close-by settlement purchased and developed by BUA Cement in Sokoto State.

“Subsequently, we have been involved in the electrification of the settlement, provision of clean water and the construction and equipping of a school, a healthcare centre etc. Bags of cementalongside cash donations weremade to each of the 387 households,as we pursue an inclusive, safe, resilient and sustainable environment. Apart from this, electricity transformers were donated to the Okpella community in Edo State, including patrol vehicles to reinforce existing security measures”.

“Despite 2020 being a challenging year, we have been buoyed by agrowing customer base aided by our deliberate decision to focus on quality. Understandably, the year ahead is fraught with challenges, as global and domestic economies, individuals and businesses make adjustment to disruptions from the pandemic, yet, we areexcited because of the continued resilience from the private sector, particularly with the increased appreciation of our product offerings; upgrades and development of the infrastructure stock by governments; the possible commencement of the African Continental Free Trade Agreement (ACFTA);the commissioning of our third line at Kalambaina,alongside the first phase of the energy diversification project, which would see the introduction of Liquefied Natural Gas to our operations”.