Nigeria’s second-largest cement company, BUA Cement has recorded a 47.5% increase in revenues of N175.52billion in its just-released full-year results for the 2019 Financial Year on the Nigerian Stock Exchange.
The company’s Profits also increased by 69.1% from N39.17 billion in 2018 to N66.24 billion in 2019. BUA Cement Plc in its current form is a business combination between CCNN Plc (Sokoto Cement) and BUA Cement Manufacturing Company’s Obu Cement Company which was completed in January 2020 and is currently listed on the Nigerian Stock Exchange (NSE), with a market capitalization of N1.18 trillion ($3.3 billion), making it the third most capitalized company on the floor of the Exchange.
Speaking on the result, Managing Director of BUA Cement, 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. This is Despite the complexities and uncertainty that trailed the economic environment in 2019. We delivered on important strategic priorities, such as: the commissioning 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 Nigeria Stock Exchange (NSE), with the eventual delisting of CCNN Plc.
Going forward, our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” both 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 thebusiness, spurred-on by continued recovery across the globaleconomy”.
In his comments Acting 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 the 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. A net deferred tax charge of N5.15 billion was provided for in the current year and actual tax payable of N475.29 million. Obu Line-1 andKalambaina Line -2 are both on pioneer status approved in February 2020 for 2-years (extension) and 3-years respectively. 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”.
It should be noted that BUA Cement Plc is Nigeria’s second-largest cement producer and the largest producer in its North-West, South-South, and South-East regions; with a combined installed capacity of 8 mmtpa and with plans underway to increase existing capacity to 11 mmtpa, through the commissioning of a new 3 mmtpa plant by the first half of 2021 in Sokoto State, Nigeria. BUA Cement operates strategically from Okpella, Edo State, and Kalambaina, Sokoto State and is committed to quality - a differentiating attribute, driven by its people, innovation, and technology; and positioned to solving Nigeria and Africa’s challenges while driving economic growth and development.