BUA Cement has reported a strong revenue growth of 27.4% to ₦460 billion for the year 2023, as disclosed during its 8th Annual General Meeting (AGM) held today.
The increase in revenue, up from ₦361 billion in 2022, reflects the company’s growing market share, which rose to 24% from 21% in the previous year.
However, the company faced significant challenges due to the devaluation of the Naira in June 2023 and its continued depreciation, coupled with rising inflation. These economic factors contributed to increased production costs, which soared by 39.5% to ₦276 billion, up from ₦197.9 billion in 2022.
Additionally, BUA Cement recorded a substantial net foreign exchange loss of ₦70 billion during the period under review, a steep rise from the ₦5.5 billion loss in 2022.
The loss was primarily attributed to finance costs of ₦52.5 billion associated with the construction of new 3 million metric tons per annum (mmtpa) lines at the Obu and Sokoto plants, and a further ₦17.5 billion linked to foreign trade payables.
Despite these economic pressures, the company reported a net profit after tax of ₦69.5 billion. Managing Director and CEO Yusuf Binji highlighted the company’s operational achievements, noting a 7.3% increase in dispatch volumes to 6.7 million metric tons per annum from 6.3 million metric tons in 2022. This growth in production was supported by the cold-commissioning of new 3mmtpa lines at the Sokoto and Obu plants and the activation of a new 70MW gas power plant in Sokoto, with another 70MW plant at Obu expected to come online in the first quarter of 2024.
To further bolster its market presence, BUA Cement procured over 500 new trucks to enhance distribution activities. Binji emphasized that these investments reinforce the company’s purpose of being “A highly competitive leader in Nigeria,” aiming to address housing and infrastructure needs sustainably while making cement more affordable.
Chairman Abdul Samad Rabiu (CFR, CON) addressed shareholders, acknowledging the reduction in the company’s bottom line but reaffirming the Board’s commitment to shareholder value. Rabiu announced a proposed dividend of ₦2 per share for the year ended 31 December 2023, despite the economic challenges. He praised shareholders for their continued support, which has been crucial to the company’s resilience and profitability.
Rabiu also discussed strategic initiatives aimed at making cement more accessible and affordable, including an LNG project to power production lines and the ongoing construction of Obu Line 4 in Ososo, Edo State.
One of the highlights of the AGM was the unanimous ratification of the appointments of two new directors. Ganiat Adetutu Siyonbola was appointed as an Independent Non-Executive Director, and Chikezie Ajaero as an Executive Director. Siyonbola’s appointment follows her recommendation for the position during the 2022 AGM.
