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, the 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 building 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 to take advantage of the low-interest-rate environment, in addition to the discontinuance of funding sources through related-parties transactions”.
I. Financial Highlights
- Revenue increases by 21% from N129.4 billion in Q3’2019 to N156.6 billion, as at Q3’2020.
- EBITDA increases by 13.1% from N64.3 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 N53.9 billion in Q3’’2019 to N62.4 billion in Q3’2020.
- Profit after Tax (PAT) up by 23.9%, from N43.3 billion in Q3’2019 to N53.57billion, as at Q3’2020.
- Earnings per Share (EPS) increases by 23.9% from N1.28 kobo in Q3’2019 to N1.58 Kobo, as at
II. Operational Highlights
- 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 growing customer followership.