BUA Cement Plc has announced a significant revenue increase in the 2022 financial year despite economic challenges that triggered an increase in operating cost, an increase in bank loans to N125.434 billion in 2022 from N83.5 billion in 2021.
This is as chairman of the board of director of the company, Abdul Samad Rabiu disclosed that he would be meeting with the minister of works, David Umahi to discuss possible ways to reduce the cost of cement in Nigeria, while acknowledging that the government and indeed, Nigerians are frustrated over the high cost of cement.
He blamed the hike in the price of cement on a free float of the Naira, adding that it would still be very hard to sustain import of cement to Nigeria and at that level, it will be higher than the current price in Nigeria.
Umahi had said the government is considering importing cement to crash the price of the product.
“I believe we can support the government to bring down the price of cement and we will do that. I think we need to do that. That’s not to say we are doing so because we are worried the government is going to import. Importation will not make the price of cement cheaper.
“We will do that because we need to support the government. We have two new lines coming up next year. We will support the government to bring the price down.
“I can assure you that we will do something about it. Nigeria is our country. It’s the only country we have. I understand that the government is frustrated. We have to do something to make sure the price is lower, while shareholders also get dividends,” Rabiu said while assuring that with the planned opening of Line-3 on Obu and Line-5 in Sokoto plants, the prices of cement would reduce, thereby forcing other manufacturers to also cut the prices,” Rabiu said yesterday in Abuja.
The cement-producing company recorded a revenue increment of 40.3 per cent to N361.9 billion in 2022, compared to N257.3 billion recorded in 2021, having outperformed its peers in cement volume growth.
Earning before tax grew by 29.2 per cent to N154.5 billion in 2022 from $119.7 billion in 2021, while Profit after Tax rose by 12.1 per cent to $101 billion. In comparison to N90.1 billion recorded in 2021. Earnings per share recorded growth of 12.0 per cent (year-on-year) to 82.98 kobo from 2.66 kobo.
Based on that, shareholders of the company at the 7th annual general meeting of the company approved the payment of a total dividend of N2.80 per ordinary share compared to N2.60 per ordinary share in the previous year.
Rabiu said that goes further to show the commitment of the management towards the maximisation of shareholders’ wealth.
Alhaji Rabiu said despite the enormous challenges that include oil production challenges, lower energy prices, rising insecurity, high inflation and tighter monetary policy stance, “BUA Cement demonstrated strength, resilience and sustained capacity, which resulted in the excellent financial performance presented to you.”
Given the expansion drive at the Sokoto and Obu plants, once completed, BUA Cement’s total installed production capacity will increase to 17 million metric tonnes per annum and firmly position the company to increase its export volumes to neighbouring African countries.
Rabiu said the management remains committed to sustainable positive impacts through our product Offerings, the pursuit of existing activities and the identification of new change areas.
In a bid to raise the quality of customer experience, BUA Cement integrated its “sales solution” with the payment platform of Nigerian banks and successfully migrated all customers. By doing this, we reduce the waiting time between when the customer makes payment and receives confirmation.
“As a company, we remain focused on our strategies, primarily market consolidation as there is no market across the country where our presence is non-existent. We, eagerly and excitedly, await the completion of Lines 3 and 5 at Obu and Sokoto during the first quarter of 2024. This would enable us to provide more quantities of cement to the domestic market and particularly increase our market share across the African continent,” he started.
In November, BUA Cement was awarded the Best Premium Quality Cement Brand at the Global Quality Excellence Awards held in Lagos. We are very proud of this recognition and it is proof of the enduring qualities of the company and its values.
Domestic demand for cement in 2023 is expected to improve given the increased consciousness on the part of the government at national and subnational levels to improve existing economic and social infrastructures, continued private-public sector partnerships, increasing interest in the federal government’s road infrastructure tax credit scheme and the drive for foreign direct investments.
