BUA Cement’s Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Rotimi Akeredolu commissions Sunshine Chocolate Factory in Idanre (Photos)

Ondo State Governor, Arakunrin Rotimi Akeredolu SAN, has commissioned the Sunshine Chocolate Factory in Alade Idanre, Idanre LGA. The factory...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

One of Africa’s leading cement manufacturers, BUA Cement Plc, has announced a 25.1% increase in revenue of N54.0billion in its financial results for the first quarter ended March 31, 2020.

BUA Cement’s Profit before Tax (PBT) increased by 15.7% from N17.4 billion, as at Q1’2019 to N20.1 billion in Q1’2020 while Profit After Tax (PAT) in Q1 2020 stood at N19.8 billion – a 26.2% increase of from N15.7 billion in Q1’2019.

This was contained in a filing on the Nigerian Stock Exchange today.

  • Revenue grew by 25.1% to N54bn from N43bn in the previous quarter.

  • Profit before tax grew by 15.7% to N20bn.

  • Profit after tax grew by 26.2% to N19.8bn.

  • Net Assets also grew by 5.4% to N383bn from N364bn.

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

- Advertisement -

“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 the possible 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 25.1% (y/y) to N54 billion. We continue to anticipate changes to customer and market behaviour, aimed at further strengthening our value model, even as we continue our push into ‘new markets’.

“As the COVID-19 virus makes landfall, we believe the current measures in place, should help minimise plausible downside risks; nevertheless, poised to take advantage of an upturn in market activities”. Binji added.

Read Also:  BUA Cement lists 33.86bn shares on NSE, becomes third largest listed company

Financial Highlights

  • Revenue increases by 25.1% from N43.1 billion in Q1’2019 to N54.0 billion, as at Q1’2020
  • EBITDA increases by 16.7% from N21.1 billion in Q1’2019 to N24.6 billion, as at Q1’2020
  • EBITDA margin declined from 48.9% in Q1’2019 to 45.6% in Q1’2020, arising from the continued push into ‘new markets’
  • Operating profit up 15.6%, from N18.2 billion in Q1’2019 to N21.0 billion in Q1’2020
    Profit before Tax (PBT) increases by 15.7% from N17.4 billion, as at Q1’2019 to N20.1 billion, as at Q1’2020
  • Profit after Tax (PAT) up 26.2%, from N15.7 billion in Q1’2019 to N19.8 billion, as at Q1’2020
  • Earnings Per Share (EPS) up 26.1% from 46kobo in Q1’2019 to 58 kobo, as at Q1’2020
Read Also:  Friday Night Lights: LaLiga takes precedence as European challengers Valencia and Atletico de Madrid gear up for Mestalla clash

Operational Highlights

  • Cement volume dispatched up 20.0% from 1,107 kt in Q1’2019 to 1,328 kt, as at Q1’2020; underpinned by increased capacity output and growing market acceptance
  • Throughput from OBU line-II reads positively; commissioned in the second quarter of 2019
  • Continued in-roads to ‘new markets’ aided by our distribution strategy
  • Implementation of COVID-19 business continuity plan
- Advertisement -
BUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand SpurBUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

BUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand SpurBUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand Spur

Latest News

Stock Market Transactions Drop by 8.49% in August – Report

The total value of stock market transactions carried out on the Nigerian Bourse in the month of August stood...

Nintendo DS dominates North America and Japan selling over 90 million units

The video game industry has evolved in the last two decades thanks to innovative consoles targeting various users globally. However, some consoles have attracted...

Establishing eCommerce Trust on the Journey to Economic recovery

Since the start of the pandemic, there have been varying effects, on the way consumers shop and make payments. We have seen a significant...

First Bank Appoints Oluwande Muoyo as a Non-Executive Director

First Bank of Nigeria Limited, Nigeria's premier and leading financial inclusion services provider, today announced the appointment of Mrs Oluwande Muoyo as a Non-Executive...

Julius Berger Announces Board Approval of Diversification Opportunity

Julius Berger announces that the company’s Board of Directors at its meeting held on September 22, 2020, approved a diversification opportunity for the Company. Julius...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -BUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand SpurBUA Cement's Profit After Tax Rises By 26.2% to N19.8bn in Q1 2020 - Brand Spur