BUA Cement, one of Africa’s largest cement producers, has declared revenues of N156.6billion in its 2020 third quarter (Q3) financial results for the 9-months ended, September 2020 – an increase of 21% from N129.4billion in the corresponding period of 2019. This was announced in a filing to the Nigerian Stock Exchange (NSE). According to the filing, BUA Cement’s Profit After Tax (PAT) also grew by 24% to N53.57billion from the corresponding period in 2019, due to a growing appreciation of BUA Cement’s product offerings.
Speaking on the result, alongside other activities undertaken during the quarter, Engr. Yusuf Binji, Managing Director/CEO of BUA Cement, 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 characterizes 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 etc. 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”.
“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”.
“Despite 2020 being a challenging year, we have been buoyed by a growing customer base aided by our deliberate decision to focus on quality. Understandably, the year ahead is fraught with challenges, as global and domestic economies, individuals and businesses make adjustment to disruptions from the pandemic, yet, we are excited because of the continued resilience from the private sector, particularly with the increased appreciation of our product offerings; upgrades and development of the infrastructure stock by governments; the possible commencement of the African Continental Free Trade Agreement (ACFTA); the commissioning of our third line at Kalambaina, alongside the first phase of the energy diversification project, which would see the introduction of Liquefied Natural Gas to our operations”.
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. With its Headquarters in Lagos, Nigeria, BUA Cement operates strategically from Okpella, Edo State and Kalambaina, Sokoto State.
i. Financial Highlights
- Revenue increases by 21% from N4 billion in Q3’2019 to N156.6 billion, as at Q3’2020.
- EBITDA increases by 13.1% from N3 billion in Q3’2019 to N72.7 billion, as at Q3’2020 (Quarter-on Quarter (q/q), EBITDA margin remained resilient to 46%, as at Q3’2020.
- Operating profit up 15.7%, from N9 billion in Q3’’2019 to N62.4 billion in Q3’2020.
- Profit after Tax (PAT) up by 23.9%, from N3 billion in Q3’2019 to N53.57billion, as at Q3’2020.
- Earnings per Share (EPS) increases by 23.9% from N28 kobo in Q3’2019 to N1.58 Kobo, as at Q3’2020.
ii. Operational Highlight
- Cement volume dispatched up 16.0% from 3,291 kt in Q3’2019 to 3,816 kt, as at Q3’2020.
- Increased push to ‘new markets’ aided by a growing customer followership.
More information can be found at www.buacement.com
Here’s why Leadway Pensure PFA should manage your Retirement Savings Account
With several pension fund administrators to pick from, here are 4 reasons why Leadway Pensure PFA Limited should be your first choice.
Retirement Savings Account (RSA) holders with Leadway Pensure have every reason to smile as the firm continues to deliver excellent customer service and more importantly, high yield on investments.
In October, for instance, all RSA funds across multiple investments in the company outperformed their stipulated benchmarks. RSA I had 32% annualized return against a 25% benchmark; RSA II returned 25% against a 23% benchmark; RSA III returned 20% against a 15% benchmark, and RSA IV returned 18% against a 9% benchmark. This is really impressive, especially during this time of economic uncertainties.
Interestingly, the National Pension Commission has just opened the transfer window for RSA holders to freely transfer from their existing PFA to another one.
This transfer between PFAs can only happen once a year and is designed to help RSA holders assert the right to choose a Pension Fund Administrator with excellent service delivery and great returns.
What this signals is that there is absolutely no reason to keep a fund manager that does not offer competitive returns or does not give you a wholesome pension experience.
With several pension fund administrators to pick from, however, it could be daunting deciding on which administrator to go with. You need not be flustered!
Here are 4 reasons why Leadway Pensure PFA Limited should be your first choice.
- Brand Heritage – Leadway Pensure is part of the Leadway Group, a strong brand that has led the non-banking financial sector for 50 years. You see? Track record is top notch! Beyond that, Leadway Pensure is one of the most capitalized PFA’s in Nigeria with an authorized share capital of N2.0 Billion and shareholder’s fund in excess of N4.0 Billion, unimpaired by losses.
- Competitive Returns – Leadway Pensure has consistently delivered returns above the inflation rate, thereby preserving the wealth of its customers. If you care about the returns on your investments, then Leadway Pensure is the right place to be
- Customer Service – Leadway Pensure has won the best PFA in customer service back to back. Talk about excellent service delivery? Simply unrivaled!
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With Leadway Pensure PFA, you are assured of returns on investment and value protection from economic downturn.
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Visa report highlights ecommerce as key to unlocking merchant revenue growth during the festive season
According to the VCA report, most small businesses have taken bold steps to prepare for the seasonal sales activity that kicks-off with Black Friday.
If small businesses can provide easy access to information, frictionless payments, a simple returns policy, and personalized shopping options, they are likely to have an immediate advantage in the marketplace.
This is according to Visa Consulting & Analytics (VCA) report titled Accelerating the shift to eCommerce, where 81% of customers indicated they are willing to pay more for a good customer experience.
“Small and Medium-sized Businesses (SMBs) that leverage eCommerce solutions; which provide excellent online shopping experience for consumers; have the opportunity to benefit from high spend periods like Black Friday and the coming festive season compared to businesses who have not mastered the importance of holistic back-end design of the customer journey,” says Kemi Okusanya, Vice President, Visa West Africa.
The move to increased online shopping comes on the back of most retailers driving their customers online due to different lockdown restrictions that affected in store foot traffic. Visa’s Covid 19 Impact Tracker, released earlier this year showed that up to 68% of consumers were going to grocery stores less often. As the retail sector looks to driving recovery, the approach to periods like Black Friday has also evolved and further necessitated safer, better online payment experiences.
“The impact of a bad payment experience can be devastating. When a shopper abandons an online shopping cart due to checkout friction, the data shows that 67% end up leaving for a competitor or never complete the purchase anywhere, and 59% say they are less likely to shop with that same retailer again,” adds Okusanya.
It’s encouraging that most small businesses (60%), according to the VCA report, have taken bold steps to prepare for the seasonal sales activity that kicks-off with Black Friday. The preparation includes changing their infrastructure and digitizing their business.
“The VCA report highlights how the payment experience is a critical touchpoint – a part of the customer journey, which requires special attention. Each time a potential customer reaches the checkout page, they have a moment to reflect on whether the effort needed to make the payment is equal to the value they get from their purchase. To win prospective and repeat customers, SMBs need to have a digital presence during the discovery and evaluation stages of the customer shopping journey,” concludes Okusanya.
Digital payments provide a convenient and secure way to pay for customers. For businesses, they reduce the friction arising from handling money, limit customer queuing, grow their customer base as a result of enhanced experience and eventually improve sales and profitability. As online shopping becomes the norm for consumers and businesses continue on the road to economic recovery, digital payment and in particular frictionless e-commerce experiences, will become a competitive advantage for small businesses.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, https://www.visa.com.ng/ and @VisaAfrica.
Groupfarma develops own Sesame seeds drier
Groupfarma has once again set the pace by developing its own sesame seeds drying machine.
A major challenge with the cultivation of Sesame in South-Western Nigeria is the inadequacy of the non-rainy drying period offered by nature in a year for the post-harvest processing of sesame pods.
Groupfarma has once again set the pace by developing its own sesame seeds drying machine. This feat was achieved with the help of a Nigerian Agricultural Engineer, Engineer Dr. Babatunde Oduntan of the University of Ibadan. Dr. Oduntan took the specifications of the sesame seeds into consideration in designing and creating the machine, such that the quality of the seeds is retained through the artificial drying process without denaturing the produce.
With this drying machine, Groupfarma is able to maintain the quality of its sesame seeds, produce more seeds in a year as they can now plant all year round, increase its returns due to more production, enhance time management as more seeds can now be dried faster, curb deforestation by maximizing limited plots of land to plant and replant the seeds.
The visit to the Groupfarma Lanlate farm is captured in the videos linked below: