BUA Cement declares 15.7% increase in profit to N20.1bn

BUA Cement Plc, has announced a 15.7 per cent increase in profit before tax to N20.1billion in its financial results for the first quarter (Q1) ended March 31, 2020, as against N17.4 billion reported in Q1 2019.

The cement manufacturing company on the Nigerian Stock Exchange (NSE) on Monday also reported Profit After Tax (PAT) of N19.8 billion in Q1 2020, a 26.2 per cent increase from N15.7 billion reported in Q1’2019.

Also from a financial position, BUA Cement reported a 25.1per cent increase in revenue of N54.0billion in Q1 2020 from N43.1 billion in Q1’2019.

Speaking on the results, the Managing Director/CEO of BUA Cement Plc, Yusuf Binji in a statement said the excellent performance in the Q1 financial results amid the outbreak of the COVID-19 pandemic is yet another a landmark of the company since its listing on the NSE.

“The company’s performance was buoyed by an increase in production capacity from 5million metric tonnes at the end of Q1’2019 to 8million metric tonnes currently; its strong product differentiation strategy which translates to an increasing appreciation of BUA Cement product offering and a growing distribution network across existing and new markets.

Binji said, “The turn of the year witnessed the achievement of yet another milestone, with the completion of the listing requirements of the NSE, emerging the third-most capitalised company on the exchange; with a market capitalisation of N1.2 trillion ($3.3 billion) and the de-listing of the shares of CCNN Plc. Subsequently, BUA Cement was included as a constituent of the MSCI frontier market index in February.

“Undoubtedly, the outbreak of the COVID-19 pandemic will have broader ramifications to the world and indeed the world economy, even as governments institute measures to curtail further spread of the virus.

“Nationally, Nigeria has not been immune to the wave of the virus; with the government instituting safety measures whilst building capacity, in preparedness for a possibly high number of cases.

“In response to the global pandemic, we implemented our “COVID business continuity program”, built into our corporate governance framework.

“This minimises disruptions along the value chain; prioritises the safety of workers and customers, and assesses probable scenarios a prolonged lockdown would have on the business.

“Clearly, our strong-showing epitomises the effect of further growth in output but most importantly, a growing appreciation of the value and service offering we continue to afford customers in the market place: with sales revenue increasing by 25.1per cent (y/y) to N54 billion”, Binji added.