BUA Cement has recorded a 47.5 per cent increase in revenue, peaking N175.52billion in its just released Full-year result for the 2019 Financial Year.
Its profit also rose by 69.1 per cent from N39.17 billion in 2018 to N66.24 billion in 2019.
The company’s Managing Director, Yusuf Binji said: ”Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across, pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins.”
Binji said these achievements were attained despite the uncertainty that trailed the economic environment in 2019, saying the company delivered on important strategic priorities, such as the inauguration of our 3mmtpa Line-2 at our Obu Plant in March, 2019; the merger completion between CCNN Plc and Obu Cement Company Limited and commenced the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the NSE.
‘’Our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” locally and outside Nigeria. We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy.”
Also, the Acting Chief Financial Officer (CFO), Chike Ajaero, said: “In 2019 we reported a decline in Profit after Tax (PAT) from N64.07 billion in 2018 to N60.61 billion which was due to income tax credit of N26.76 billion in 2018 from reversal of previous tax provision made on Obu Line 1 and deferred tax credit on securing approval for tax exemptions under pioneer status incentive in 2019. Net deferred tax charge of N5.15 billion was provided for in the current year and actual tax payable of N475.29 million.
He said Obu Line-1 and Kalambaina Line -2 are both on pioneer status approved in February, this year for two-year (extension) and three-year. The computation of Earnings per Share (EPS) for 2018 has been re-stated to reflect a business combination under common control, as at January 2018.
BUA Cement is Nigeria’s second largest cement producer and the largest producer in the Northwest, Southsouth and Southeast regions; with a combined installed capacity of eight mmtpa and has plans to increase its capacity to 11 mmtpa through the inauguration of a new three mmtpa plant by the first half of next year in Sokoto.
BUA Cement operates from Okpella, Edo State and Kalambaina, Sokoto State.
