The board of BUA Cement Plc, gave shareholders and investors more reason for cheer, with a strong start for the year 2022, as revenue from sales jumped by 58.5%, while profit after tax still rose 48.18%, despite making a 283.06% increase in income tax provisions for the period.
According to the result posted on the NGX Limited platform, revenue from the sale of cement increased by N35.795bn from N61.988bn, to N96.988bn; of which cost of sales rose by N14.733bn or 52.2% to N48.791bn from N32.058bn in the corresponding first quarter of 2021; leaving a gross profit of N48.196bn, an increase of N19.062bn or 65.42%. A breakdown showed that cost of sales was principally driven by energy cost, which soared from N12.811bn to N21.847bn; with cost of materials coming a distant second with N15.175bn, from N9.137bn; followed by operations, maintenance and technical fees increased to N4.397bn, from N2.989bn.
Other income took a leap from N22.81m to N185.064, with insurance claims contributing the lion’s share of N164.933m, compared to just N7.757m in 2021; selling and distribution costs increased by N1.683bn from N1.559bn to N3.243bnl, of which distribution costs contributed N2.214bn, as against N614.901m. Administrative expenses improved by N809.39m or 41.54% from N1.948bn in the preceding first quarter, to N2.757bn, of which other admin expenses contributed N449.031m from N324.447m; while corporate social responsibility dropped from N405.372m to N315.559m.
Operating profit stood at N42.381bn, representing N16.732bn or 65.23% increase over the N25.649bn in the prior Q1 period; as net finance costs dropped significantly from N878.734m to N30.317m; resulting in profit before tax growth from N24.77bn to N42.351bn, a difference of N17.58bn or 70.97%.
Income and deferred taxes stood at N9.209bn, 283.06% over the previous N2.404bn; while profit after tax was N10.775bn or 48.18% better at N33.142bn, from N22.366bn. Net profit for the period translated to a basic earnings per share of 98 kobo, from 66 kobo in the similar period of 2021.