BUA Cement Plc, one of the leading Cement manufacturers in Africa declared in its audited financial statement, an 19.4% year-on-year growth in profit to N72.34 billion for the financial year of 2020, compared to last year’s figure of N60.34 billion.
The double-digit growth in profit was a testament to the cement maker’s focus on efficiency, excellent cost optimization strategies, newer technologically advanced plants, and lastly the strong growth in revenue which was driven by the rising demand for cement.
READ: BUA Cement to commission second Kalambaina Cement Line in July 2021
BUA Cement’s revenue expanded by 19.33% in 2020, this growth in revenue was the highest among other cement manufacturers in 2020, as the company’s revenue growth of 19.33% beats, Dangote’s 16%, and Lafarge’s 8.3% year-on-year growth.
- Revenue generated from the sale of bagged and bulk cement grew by 19.33%, driven by 19.52% growth in the sales of bagged cement, while revenue generated from the sales of bulk cement declined by 32.59%.
- The company’s profit surged by 19.4% year-on-year to N72.34 billion.
- The Board of BUA Cement Plc proposed a N2.067 kobo per share dividend, driven by the increase in profits and cash flow generated from operations.
- BUA’s net cash flow generated from operations soared by 146.09% year-on-year to N65.11 billion.
- The Cement maker spent a total of N127.12 billion on the purchase of property, plant, and equipment in 2020.
READ: Market price of cement is 20% higher than ex-factory price because of logistics issues – BUA Group
The company in 2020 was able to increase its revenues by more than 19% to N209 billion, with sales volumes climbing up by more than 13%. This translates to about 600,000 tons to 5,100,232 tons in 2020.
BUA Cement Plc is Nigeria’s second-largest cement company, its impressive 2020 financial performance is a reflection of the continued value and strength of the brand and product offerings as well as a testament to the cement maker’s focus on efficiency, excellent cost optimization strategies, and newer technologically advanced plants.
All these ensured that BUA Cement was able to weather the storm from its operating environment in 2020, which was stirred by the COVID-19 pandemic.
What you should know
- BUA Cement is the fourth largest listed entity on the Nigerian Stock Exchange, with a market capitalization in excess of N2.4 trillion.
- At yesterday’s market close, the market value of the company’s shares was put at N73.5 per share, down by about 13.5% YTD. BUA Cement’s dividend yield at this price is put at 2.8%.
