BUA Cement Plc on Wednesday released its 2021 audited FY results reporting a profit of N90 billion during the period, representing a 24.51 per cent increase year on year (Y-o-Y).
The company’s result is on the back of an inflationary year, as most businesses and their consumers have had to deal with rising cost of goods and services.
A cursory view of the result reveals the company’s revenue was driven by growth in the company’s product categories. Meanwhile, Revenue growth for the period was at 22.86 per cent year on year.
While Sales of bulk cement increased by 40.45 per cent and raked in N615 million, sales of bagged cement grew by 22.83per cent generating N257 billion during the period.
Domestic sales in Nigeria for the period grew by 23 per cent, generating N254.99 billion, while sales outside Nigeria raked in N2.33 billion, reflecting an improvement of 63.42 per cent year on year, compared to its sales in 2020.
The improved performance appears to be driven by higher prices triggered by inflationary pressures, for the most part of the year.
As of December 2021, cement prices were around N4,000, as average inflation for the year was 16.98 per cent. Other drivers of revenue will be disclosed at the company’s earnings call, scheduled for April 6, 2022.
The company also made money from income earned from fixed deposit investments, raking in a total of N620 million.
BUA Cement Plc, however, grew its other income mainly from grants and loans, rising 599.75 per cent to N2.63 billion years on year.
Despite the growth in topline revenues, administrative expenses rose much higher than the inflation rate at 29 per cent YoY. Selling and distribution expenses grew by 23 per cent, however, the company drastically reduced its expenses on Adverts and promotions by 87 per cent compared to the prior-year periodIn addition, the company’s total assets are now N728.51 billion, while Net assets rose by 5.89 per cent to N398.12 billion.
The company’s long-term borrowings stood at N43.69 billion.
A consistent increase in cement prices during the year, revealing that cement prices had increased significantly during the period, as high as 54 per cent from N2,600 at the beginning of the year to N3,800 in April and around N4,000 at the end of the year.
BUA Cement has earnings per share (EPS) for the period was at N2.66, a 24 per cent increase from N2.14 in financial year (FY) 2020.
The company’s board of directors have recommended the payment of N2.6 kobo as dividend for the financial year ended 31 December 2021.
Upon approval by shareholders, dividends paid to shareholders will be subject to the deduction of withholding tax at the appropriate rate at the time of payment.
BUA Cement last traded at N70.75 per share and has returned 5.52 per cent from year-to-date.