One of Africa’s largest cement producers, BUA Cement, has announced an impressive 2020 half-year results declaring revenues of N101.3billion and a Profit After Tax of N34.82billion representing an increase of 12.7% and 13.74% respectively from the corresponding period in 2019. This was contained in a filing to the Nigerian Stock Exchange.
Speaking on the results, Yusuf Binji, Managing Director of BUA Cement said that the continued impressive performance in 2020 despite the challenging operating environment occasioned by the covid-19 pandemic, was a pointer to the value and strength of the BUA Cement brand, and product offerings as well as a nod to the excellent implementation of the company’s Business Continuity Plan which ensured that BUA Cement was able to withstand the impact of the pandemic in the period under review.
“Our resilient performance continues to showcase the value and strength in our product offering alongside our strategic business model. Our revenues increased by 12.7% to N101.3 billion from the corresponding period in 2019 whilst Operating profits increased by 7.0%, from N38.1 billion in H1’2019 to N40.8 billion in H1’2020. “Equally, EBITDA margin improved in this quarter to 48.1% – an improvement from 45.6% in Q1, 2020.
“In a bid to further drive cost efficiencies and sustainability, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) at the Kalambaina, Sokoto State and the management of our mining operations.
“Given these deliberate and strategic choices amongst other cost management efforts, we continue to combine development and innovation into our offerings and activities,” Binji said.
On the impact of the pandemic on the business, Binji noted that, “despite the prevailing economic conditions, we are quite optimistic about the future because it affords us not only with the opportunity to further evolve our business model but also provides an opportunity for accelerated development. We will continue to push to new markets aided by a focused distribution strategy”
It should be noted that BUA Cement has also been actively involved in alleviating the impact of the virus on the most vulnerable in society while also supporting the government’s efforts by providing foodstuff, PPEs and medical equipment to host communities amongst others.
I. Financial Highlights
Revenue increases by 12.7% from N89.9 billion in H1’2019 to N101.3billion, as at H1’2020
EBITDA increases by 5.8% from N44.8 billion in H1’2019 to N47.4 billion, as at H1’2020 (Quarter-on Quarter (q/q), EBITDA margin increases from 45.6% in Q1’2020 to 48.1%, as at Q2’2020)
Operating profit up 7.0%, from N38.1 billion in H1’2019 to N40.8 billion in H1’2020
Profit before Tax (PBT) increases by 9.8% from N35.7 billion, as at H1’2019 to N39.2 billion, as at H1’2020.
Profit after Tax (PAT) up by 13.7%, from N30.61 billion in H1’2019 to N34.8 billion, as at H1’2020,
Earnings Per Share (EPS) increases by 14.4% from N0.90 kobo in H1’2019 to N1.03 Kobo, as at H1’2020
II. Operational Highlights
Cement volume dispatched up 7.9% from 2,282 kt in H1’2019 to 2,463 kt, as at H1’2020; underpinned by growing market acceptance, our COVID business continuity plan and particularly, a business environment not inundated by the Coronavirus pandemic
To boost energy efficiency and reduce energy costs, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) for the Kalambaina operations and management of our mining operations
Continued push to ‘new markets’ aided by a focused distribution strategy