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Higher sales lift BUA Cement’s full-year profit to N71 billion

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Nigeria’s fourth biggest company by market value, BUA Cement PLC, has reported a 16 per cent leap in bottom-line for full-year 2020 on the back of enlarged sales, barely one year after it debuted Nigerian Stock Exchange.

Revenue scaled up to N209.474 billion in the period under review, 19.3 per cent stronger than the N175.518 billion posted for the same period in the previous year, the earnings report of BUA Cement obtained by PREMIUM TIMES on Monday showed.

No mention was made of the key drivers of the improvement, but that must have been helped by the Nigerian government’s decision to exempt the Lagos-based cement maker and rival Dangote Cement from land border closure last year, providing both manufacturers the resilience needed in the face of the coronavirus crisis.

Profit before income taxes was up by 19.4 per cent at N79.066 billion from N66.236 billion.

Profit after income taxes rose to N70.518 billion from N60.610 billion, implying a 16.3 per cent growth.

BUA Cement came head to head with Dangote Cement in June over the ownership of mining sites at Obu-Okpella in Edo State, prompting a Benin High Court to issue a restraining order keeping the latter at bay.

The firm proposes to elevate capacity to 20 million metric tonnes per annum(mtpa) by 2022, having struck a construction deal with China’s Sinoma CBI to build three new plants of 3 million mtpa each in Adamawa, Edo and Sokoto states. The plant development is estimated at $1.05 billion.

Basic earnings per share for FY2020 stood at N2.08, 16.2 per cent bigger than the N1.79 for the corresponding period of 2019.

Shareholders’ fund climbed 2.9 per cent to N374.129 billion from N363.697 billion.

Abdulsamad Rabiu, Nigeria’s third and Africa’s sixth richest man according to Forbes, owns 97 per cent of BUA Cement, consequently giving the firm a tiny public float.

Abdul Samad Rabiu, BUA Group Chairman [PHOTO CREDIT: Official website of BUA]

The NSE expects listed companies to have at least 20 per cent of a company’s shares to be held by the public or that the floated shares are worth a minimum of N20 billion, which is seen as a paltry amount. BUA Cement meets only the second requirement.

The firm emerged from a marriage of Cement Company of Northern Nigeria Plc and Obu Cement Limited in January 2020.

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