BUA Cement Plc, has recorded a 47.5 per cent increase in revenues of N175.52 billion in its full year results for the financial year ended December 31, 2019.
The Company’s results released on the Nigerian Stock Exchange (NSE), yesterday also showed that profit before tax increased by 69.1 per cent from N39.17 billion in 2018 to N66.24 billion in 2019.
Cost of sales was up by 57.6 per cent to N93.1 billion in 2019, resulting from increased production volumes. Operating expenses recorded a 20.2 per cent rise from N18.60 billion in 2018 to N22.36 billion in 2019, while net finance cost was up 41.3 per cent to N5.19 billion from N3.67 billion in 2018, due to increased working capital requirement, which rose from N3.90 billion in 2018 to N21.36 billion in 2019, necessitated by capacity enhancement.
Meanwhile, the Company total assets hit N470.567 billion as at December 31, 2019 from N487.974 billion in 2018, while total shareholders’ fund stood at N363.697 billion, higher than N308.342 billion recorded in 2018.
BUA Cement Plc in its current form, is a business combination between CCNN Plc (Sokoto Cement) and BUA Cement Manufacturing Company’s Obu Cement Company which was completed in January 2020 and is currently listed on the NSE, with a market capitalisation of N1.18 trillion ($3.3 billion), making it the third most capitalised company on the floor of the Exchange.
Speaking on the result, managing director of BUA Cement, Yusuf Binji said, “Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across: pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins.”
He stated further this is Despite the complexities and uncertainty that trailed the economic environment in 2019, saying that “We delivered on important strategic priorities, such as: the commissioning of our 3mmtpa Line-2 at our Obu Plant in March, 2019; the merger completion between CCNN Plc and Obu Cement Company Limited and commenced the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the NSE, with the eventual delisting of CCNN Plc.”
Going forward, Binji said “Our focus is to further harness the full benefits of the merger while making further in-roads to new markets both locally and outside Nigeria. We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy.”
Also, the acting CFO of the Company, Chike Ajaero said, “In 2019 we reported a decline in Profit after Tax (PAT) from N64.07 billion in 2018 to N60.61 billion which was due to income tax credit of N26.76 billion in 2018 from reversal of previous tax provision made on Obu Line 1 and deferred tax credit on securing approval for tax exemptions under pioneer status incentive in 2019.
“Net deferred tax charge of N5.15 billion was provided for in the current year and actual tax payable of N475.29 million. Obu Line-one and Kalambaina Line -two are both on pioneer status approved in February 2020 for 2-years (extension) and three-years respectively. The computation of Earnings per Share (EPS) for 2018 has been re-stated, to reflect a business combination under common control, as at January 2018.”