N136.40bn production cost eats into BUA Cement’s revenue

BUA Cement revenue from 2021 sales rose by 22.8%. However, cost of production for the cement bags weighed heavily on the turnover, as it grew by 19.6%, showing the management’s inability to tame it.

The company spent an extra N22.43 billion to manufacture its products sold in the market, taking the cost of sales to N136.40 billion for last year, well above the N113.96 billion spent in 2020.

Amid rising cost of production, BUA Cement generated N257.32 billion within twelve months of 2021, surpassing the N209.44 billion revenue it earned from customers a year before.

Read also: BUA Cement to raise price by 11.4%, blames Dangote, Lafarge for rising cost

According to the Audited Financial Statements 2021, released on Wednesday, it was gathered that the gross profit for the period is N120.92 billion, against the N95.47 billion recorded in 2020.

Operating profit for last year was N104.22 billion, rising above the N82.02 billion BUA Cement recorded during the corresponding period, the financial report stated.

At the end of 2021, BUA Cement reported that its profit after tax (PAT) was N90.07 billion, in contrast to the N72.34 billion that was reported during the previous year.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now