BUA Cement records N53.6bn net profit in Q3


BUA Cement Plc has announced an impressive third quarter (Q3), 2020, declaring profit after tax of N53.567 billion.

The Company in its unaudited nine-months ended, September 30, 2020 report released on the Nigerian Stock Exchange showed that net profit grew by 23.85 per cent from N43.253 billion in Q3, 2019 to N53.567 billion in Q3, 2020, while earnings per share (EPS) increases by 23.9 per cent from N1.28 in Q3, 2019 to N1.58, as at Q3, 2020.

The Company also declared revenues of N156.550 billion in Q3, 2020, an increase of 20.95 per cent from N129.429 billion in the corresponding period of 2019. EBITDA increases by 13.1 per cent from N64.3 billion in Q3, 2019 to N72.7 billion, as at Q3, 2020, while EBITDA margin remained resilient to 46 per cent as at Q3, 2020.

Operating profit up 15.7 per cent, from N53.9 billion in Q3, 2019 to N62.4 billion in Q3, 2020. Cement volume dispatched for the period was up by 16.0 per cent from 3,291 kilo tonnes (kt) in Q3, 2019 to 3,816 kt, as at Q3, 2020.

Speaking on the result, alongside other activities undertaken during the quarter, managing director/CEO of BUA Cement, Engr Yusuf Binji, acknowledged the positive impact of a less than anticipated COVID-19 pandemic shock on the populace and economy; the expected resilience of the private sector and a short rainy season.

According to him, this has been a very heartwarming and resilient performance, underpinned by the continued quality that characterises the BUA Cement product offerings as 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 among others. Bags of cement alongside cash donations were made 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,” he said.

Binji also noted that “In view of our ongoing expansion activities alongside working capital requirements, we have concluded on plans to approach the bond market. This decision to approach the market form part of the considerations put before shareholders at our last Annual General Meeting (AGM) in October; thus, enabling us take advantage of the low interest rate environment, in addition to the discontinuance of funding sources through related-parties transactions.”

BUA Cement Plc is Nigeria’s second largest cement company and the largest producer in its North-West, South-South and South-East regions; with a combined installed capacity of 8million metric tonnes per annum and with plans underway to increase existing capacity to 11million mtpa, through the commissioning of a new 3million mtpa plant by the first half of 2021 in Sokoto State, Nigeria.


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