BUA Cement Plc has reported a decline in profit for the 2023 financial year, attributing the slump to a substantial foreign exchange loss totaling N69.96 billion. The company disclosed a profit before tax of N67.23 billion, representing a 44% decrease from N120.15 billion recorded in the previous year. Similarly, profit after tax declined to N69.45 billion from N101.01 billion in 2022, primarily due to a significant increase in foreign exchange losses compared to the previous year’s figures.
Despite the profit decline, the company’s board of directors has recommended a dividend payment of N2.00 per ordinary share of 50 kobo each, subject to shareholder approval. This is a reduction from the N2.80kobo dividend paid out in the previous financial year.
BUA Cement recorded a 27.4% increase in revenue, reaching N459.99 billion in 2023. However, the company faced challenges in the business environment, including rising production costs and operating expenses. The cost of production surged to N276.04 billion, a 39.15% increase from the previous year, while energy consumption expenses amounted to N123.27 billion.
The company’s financial statement also revealed a net foreign exchange loss of N70 billion, up from N5.5 billion in the previous year. This loss was attributed to finance costs associated with construction activities and foreign trade payables.
In terms of borrowing, BUA Cement’s total borrowings soared to N418.16 billion in 2023, marking a substantial increase from the previous year. Long-term borrowing surged by 560.4% to N295.47 billion, while short-term borrowings increased by 52% to N122.69 billion.
Despite these challenges, BUA Cement remains Nigeria’s second-largest cement company, with a combined installed capacity of 11 mmtpa. The company is strategically positioned in Okpella, Edo State, and Kalambaina, Sokoto State, with plans to expand its capacity to 17 mmtpa.
Reflecting on the financial performance, Mr. Yusuf Binji, the Managing Director/CEO of BUA Cement, acknowledged the challenging operating environment but highlighted the company’s initiatives to increase market share and revenue. Additionally, Mr. Jacques Piekarski, the Chief Financial Officer, expressed confidence in the company’s resilience and evolving strategy to thrive amidst economic uncertainties.
Overall, BUA Cement remains committed to its purpose of being a highly competitive leader in Nigeria, addressing housing and infrastructure needs while seeking innovative ways to make cement affordable in the market.
