Amid various challenges bedeviling the manufacturing sector in the country, BUA Cement has posted a positive audited financial reports for 2023.
BUA Cement the biggest cement manufacturers company in Nigeria at the moment.
BUA Cement Nigeria Plc has presented its audited financial reports for the 12-month period ended December 2023.
The report shows that the company’s revenue grew as sales for the year ended December 2023 rose to ₦460 billion.
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This is a 27.42% growth when compared with the ₦360.98 billion of December 2022.
Amid the challenging economic situation, BUA Cement’s business performance has been sustained by strong brand.
This has contributed to volume growth and ability to generate continuous shareholders’ value.
Despite rising input costs caused by unreliable electricity, shortage of gas supply, and foreign exchange crisis.
BUA grew earnings before interest taxation, depreciation, and amortization, (EBITDA) 9.6% to ₦169.3 billion from ₦154.5 billion in 2022.
As a result of inflationary pressures, and currency volatility, BUA production costs spiked by 39.14% to ₦276.04 billion as at December 2023.
The Managing Director/ CEO of BUA Cement said, “Clearly, the operating environment in 2023 was challenging, given the different headwinds confronted at the start of the year and especially with the devaluation of the Naira.
During the year, we launched the maiden edition of the BUA Cement Scratch and Win promo, among other initiatives.
“In addition, we could commission the new 3mm tap lines at the Sokoto and Obu Plants, activate a new 70 MW gas power plant in Sokoto and eagerly await the activation of the 70 MW gas power plant at Obu during the first quarter of 2024.
Apart from these, we took delivery of over 500 trucks to support our distribution activities, which further deepened our market presence,” said Binji.
The Chief Financial Officer, Jacques Piekarski, while speaking on the Financial Performance, said,
“Our financial performance in 2023 was indeed resilient given the economic environment, led by the devaluation of the Naira.
“But despite the FX challenge EBITDA increased by 9.6% to ₦169.3 billion from ₦154.5 billion in 2022.
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We are confident about the business, together with the evolving strategy to thrive.”
Nevertheless, the Company reported a net profit after tax of ₦69.5 billion.
The Board of directors of the company have recommended for the approval of shareholders a payment of ₦2.00 dividend per 1 ordinary share of 50kobo each.
