BUA Cement Plc, Nigeria’s second Largest Cement producer, has released its Q1 2021 Unaudited results reporting a profit of N33.14 billion during the period, representing 48.18% increase Y-o-Y.
Further analysis of the result shows that the company’s product categories improved, driving revenue growth in the period. Revenue growth for the period was at 58.50% year on year, recorded as N96.99 billion.
Key highlights of its results
As revenue from sales of cement, the company’s only revenue segment during the period increased by over 58%, cost of materials similarly appreciated by 66% from N9.14 billion in Q1 2021 to N15.18 billion, in the current period.
The company also made money from interest income earned from investment, raking in a total of N315.63 million. This was however subdued by interest expenses during period, resulting in a Net finance cost of N30.32 million.
BUA Cement Plc, however, grew its other income mainly from Sundry income, and Insurance claims, to increase by a whopping 715.40% to N185.99 million year on year.
Despite the growth in topline revenues, administrative expenses grew by double-digits, subduing bottom-line profit. Selling and distribution expenses grew by over 100%, despite the company’s decline in its advertising and campaign spending. Advertising expenses dropped massively by 88% while distribution costs was recorded as N2.21 billion compared to just N615 million in the prior-year period.
In addition, the company’s total assets are now N783.73 billion, while Net assets rose by 8.32% to N431.26 billion. The company’s long-term borrowings stood at N52.46 billion.
BUA Cement has earnings per share (EPS) for the period was at N0.98, a 48.48% increase from N0.66 in Q1 2021. The company is scheduled to pay its shareholders a total of N2.60 as dividend for the financial year ended 31 December 2021.
