BUA Cement grows FY 2023 profit to N460bn despite N70bn FX loss

BUA Cement has announced a revenue growth of 27.4% to N460n from the N361 billion recorded in the previous year.

This is despite a foreign exchange loss of N70bn occasioned by the devaluation of the Naira.

This was contained in the full year 2023 Audited Financial Statements and Accounts released by the company on February 29, 2024.

The company noted that the strong performance was attributable to increasing market share despite the challenging economic conditions that started with the naira redesign policy.

It further stressed that with the devaluation of the Naira last June and its continued depreciation, as well as growing inflation, the Company faced increasing price pressures which impacted production costs, as these increased by 39.5% to N276 billion from the N197.9b in 2022.

READ ALSO:BUA Cement to drop cement price, offers shareholders N2.80kobo per share dividend

In addition, a net foreign exchange loss of N70 billion (2022: N5.5 billion) was recorded; with N52.5 billion attributed to finance costs, associated with the construction of the additional 3mmtpa lines at Obu and Sokoto (incl. other ancillary activities) and the sum of N17.5 billion attributed to foreign trade payables. Nevertheless, the Company reported a net profit after tax of N69.5 billion.

“Clearly, the operating environment in 2023 was challenging, given the different headwinds confronted with 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, which saw BUA Cement further increase its share of the market and resulted to a 27.4% rise in revenues to N460 billion from N361 billion in the prior year.

“In addition, we cold commissioned the new 3mmtpa lines at the Sokoto and Obu Plants, activated a new 70MW gas power plant in Sokoto and eagerly await the activation of the 70MW 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” the company’s Managing Director/ CEO, Yusuf Binji noted.

On the Financial Performance, the Chief Financial Officer, Jacques Piekarski said: “Our financial performance in 2023 was indeed resilient given the economic environment, led by the devaluation of the Naira. But despite the reported foreign exchange loss, Earnings Before Interest, Taxes, Depreciation, And Amortization (EBITDA) increased by 9.6% to N169.3 billion from N154.5 billion in 2022. We are confident about the business, together with the evolving strategy to thrive.”

By: Babajide Okeowo

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