BUA Cement Posts N95bn 2020 Profits, Eyes 20m MT Capacity

The board of BUA Cement Plc, on Sunday, announced a full-year revenue of N209bn for the 2020 Full-Year financials representing an increase of 19% from the corresponding period in 2019, while profit before tax gained 16% at N95.4bn, from N82.4bn in 2019, in what the company said in a statement further consolidates its position as one of Nigeria’s most profitable companies

Sales volumes increased by 13% by about 600,000tons to 5,100,232 tons in 2020, operating profits rose to N82.5bn, while net profit improved from N60.6bn in the corresponding year, to N70.5bn.

According to the statement, BUA Cement plans to grow its total capacity to 20m metric tonnes per annum upon completion ongoing projects expected to further strengthen its competitive edge in the Nigerian market, with the commissioning of BUA’s new three million Metric Tonnes to its Sokoto Cement Plant this year. This is in addition to the three new lines of 9m metric tonnes total capacity in Adamawa, Edo and Sokoto States by 2023, for which it recently signed an agreement with Sinoma CBMI.

The statement quoted the company’s Managing Director, Engr. Yusuf Binji, as saying recently that BUA Cement’s exceptional performance in the 2020 Financial Year, is a reflection of the continued value and strength of its brand and product offerings. For him, it is also a nod to the excellent implementation of the company’s business continuity plan which ensured that BUA Cement was able to withstand the impact of the pandemic throughout 2020.

Binji had earlier expressed BUA Cement’s optimism about the future, despite the prevailing economic conditions in 2020, “because it affords us not only with the opportunity to further evolve our business model but also provides an opportunity for accelerated development. We will continue to push to new markets aided by a focused distribution strategy.”

Recall that BUA Cement, in 2020, entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) at its Kalambaina Plant, Sokoto State, and for the management of its mining operations. These, among other cost management efforts, the management believes would ensure BUA Cement continues to combine development and innovation into its activities, thereby driving efficiency, reduce operating costs and maximize profits.

The statement also quoted a recent interview by Abdul Samad Rabiu, Chairman of BUA Cement, where he assured that despite the strides made in the Nigerian Cement Industry in the past few years, there is still room for immense growth.

According to Rabiu, Nigeria with its population of about 200m people was still greatly underserved by its cement industry with current consumption levels at about 130kg per head, compared to smaller African countries with consumption levels at about 170-180kg per head.

Nigeria’s cement consumption is expected to increase to about 200kg per head in coming years which is one of the reasons why BUA Cement is ramping up its investments in new plants to be able to meet this potential demand, as well as take advantage of regional export opportunities through the African Continental Free Trade Area (AfCFTA) agreement which came into effect in 2021.

BUA Cement is the second-largest manufacturing and cement Company listed on the Nigerian Stock Exchange, with its headquarters based in Lagos, Nigeria. The company also operates four plants in Edo and Sokoto States with its key markets in the South-East, North-West and North-East Nigeria. The company recently completed Nigeria’s largest corporate bond offering ever of N115bn which was oversubscribed to the tune of N137.82bn.