Table of Contents
Key Point
- BUA Cement’s revenue soared 64.6% to $221.1 million in H1 2024, up from $133.9 million in H1 2023.
- Energy expenses surged 170% to $78.7 million, impacting overall costs and reducing profit margins despite higher revenue.
- Net profit dropped 46% to $20.7 million in H1 2024, largely due to $24 million in foreign exchange losses.
BUA Cement Plc, a leading cement manufacturer led by Nigeria’s third-richest man Abdul Samad Rabiu, announced mixed financial results for the first half of its 2024 fiscal year.
The company reported a significant increase in its revenue which surpassed $220 million, according to its unaudited financial statements for the six months ending June 30, 2024.
Revenue growth and rising costs
Revenue surged by 64.6 percent, climbing from N221.1 billion ($133.9 million) in the first half of 2023 to N363.94 billion ($221.1 million) in the same period of 2024. However, rising energy costs significantly impacted the company’s expenses.
Energy costs escalated from N47.91 billion ($29.1 million) to N130.1 billion ($78.7 million), pushing the direct costs for the period to N254.6 billion ($154 million), up from N114.94 billion ($70 million) in the first half of 2023.
Profit decline amid foreign exchange losses
Despite a marginal increase in gross profit, from N106.12 billion ($64.3 million) to N109.29 billion ($66.2 million), the company experienced a substantial decline in net profit.
Its profit after tax fell from N63.62 billion ($38.4 million) in the first half of 2023 to N34.25 billion ($20.7 million) in the first half of 2024, largely due to foreign exchange losses totaling N39.8 billion ($24 million).
Financial stability and market presence
BUA Cement, Nigeria’s second-largest cement maker and a key subsidiary of BUA Group, continues to play a key role in the industrial sector. Rabiu, who owns a 97.67-percent stake in BUA Cement, is one of Africa’s richest billionaires with a fortune of $5.2 billion.
Despite the profit decline, BUA Cement’s retained earnings and shareholders’ equity saw significant increases. Retained earnings rose from N169.5 billion ($102.6 million) on Dec. 31, 2023, to N203.7 billion ($123.2 million) by June 30, 2024.
Shareholders’ equity grew from N385.2 billion ($232.9 million) to N419.5 billion ($253.8 million). Total assets increased from N1.22 trillion ($738.1 million) to N1.45 trillion ($877.3 million).
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