BUA Cement Plc's financial results for FY 2021, records a profit of N90 billion

BUA Cement Plc, Nigeria's second-largest cement producer, has issued its audited FY results for 2021, declaring a profit of N90 billion for the period, up 24.51 percent year on year.

The company's performance comes after an inflationary year, in which most firms and customers have had to contend with growing costs of goods and services.

The company's revenue was driven by an increase in the company's product categories, according to a quick scan of the results. Meanwhile, revenue increased by 22.86 percent year over year over the period.

While bulk cement sales jumped by 40.45% to N615 million, bagged cement sales increased by 22.83 percent to N257 billion within the same time.

For the period, domestic sales in Nigeria increased by 23% to N254.99 billion, while international sales increased by 63.42 percent to N2.33 billion, representing a year-on-year rise of 63.42 percent above sales in 2020.

For the most part, the increased performance appears to be driven by higher pricing generated by inflationary pressures. Cement prices were around N4,000 in December 2021, with an annual inflation rate of 16.98 percent. Other revenue drivers will be revealed during the company's earnings call on April 6, 2022.

The corporation also profited from the income generated by fixed deposit investments, which totaled N620 million.

BUA Cement Plc, on the other hand, had a 599.75 percent increase in other income, primarily from grants and loans, to N2.63 billion year on year.

Despite the increase in topline revenues, administrative expenses increased by 29 percent year over year, much exceeding the inflation rate. However, despite a 23 percent increase in selling and distribution costs, the corporation cut its advertising and marketing costs by 87 percent compared to the previous year.

Furthermore, the company's total assets have increased by 5.89 percent to N728.51 billion, while net assets have increased by 5.89 percent to N398.12 billion. Long-term borrowings for the corporation totaled N43.69 billion.

Cement prices grew consistently throughout the year, rising as much as 54 percent from N2,600 at the start of the year to N3,800 in April and approximately N4,000 at the end of the year.

For the quarter, BUA Cement's profits per share (EPS) were N2.66, up 24 percent from N2.14 in FY 2020. The board of directors of the firm has proposed that a dividend of N2.6 kobo be paid for the fiscal year ending December 31, 2021.

BUA Cement's profits per share (EPS) for the quarter were N2.66, up 24 percent from N2.14 in FY 2020. For the fiscal year ending December 31, 2021, the firm's board of directors has suggested paying a dividend of N2.6 kobo.

Dividends paid to shareholders will be subject to withholding tax at the relevant rate at the time of payment, pending shareholder approval.

BUA Cement Plc last traded at N70.75 per share, giving it a year-to-date gain of 5.52 per share.