…Records strong revenue growth of 27.4 percent to 460 billion
…impacted by foreign exchange losses due to devaluation of naira
By Olushola Okunlade
Today, BUA Cement has released its full year 2023 Audited Financial Statements and Accounts. Despite the challenging economic conditions that started with the Naira redesign policy, the Company posted a strong revenue growth of 27.4% to N460 billion (2022: N361
billion), resulting from an increasing market share. However, with the devaluation of the Naira last June and its continued depreciation, as well as growing inflation, the Company faced increasing price pressures which impacted production costs, as these increased by 39.5% to N276 billion (2022: N197.9 billion).
In addition, a net foreign exchange loss of N70 billion (2022: N5.5 billion) was recorded; with N52.5 billion attributed to finance costs, associated with the construction of the additional 3mmtpa lines at Obu and Sokoto (incl. other ancillary activities) and the sum of N17.5 billion attributed to foreign trade payables. Nevertheless, the Company reported a net profit after tax of N69.5 billion.
According to the Managing Director/ CEO, Yusuf Binji: “Clearly, the operating environment in 2023 was challenging, given the different headwinds confronted with at the start of the year and especially with the devaluation of the Naira. During the year, we launched the maiden edition of the BUA Cement Scratch and Win promo., among other initiatives, which saw BUA Cement further increase its share of the market and resulted to a 27.4% rise in revenues to N460 billion from N361 billion in the prior year.
In addition, we cold commissioned the new 3mmtpa lines at the Sokoto and Obu Plants, activated a new 70MW gas power plant in Sokoto, and eagerly await the activation of the 70MW gas power plant at Obu during the first quarter of 2024. Apart from these, we took delivery of over 500 trucks to support our distribution activities, which further deepened our market presence.
We believe these investments further ‘Reinforces our Purpose,’ which is to be ‘A highly competitive leader in Nigeria’, as we address not only the housing and infrastructure needs in a sustainable manner, but also seek out innovative ways to make cement affordable”.
On the Financial Performance, the Chief Financial Officer, Jacques Piekarski said: “Our financial performance in 2023 was indeed resilient given the economic environment, led by the devaluation of the Naira. But despite the reported foreign exchange loss, EBITDA increased by 9.6% to N169.3 billion from N154.5 billion in 2022. We are confident about the business, together with the evolving strategy to thrive.”
Financial Highlights
N’m FY 2023 FY 2022 %
Revenue 459,999 360,989 27.4
Cost of sales (276,043) (197,944) (39.5)
Foreign exchange losses (69,956) (5,501) 12.7x
Operating profit 74,697 129,720 (42.4)
Profit after tax 69,455 101,011 (31.2)
Earnings per share 205 298 (31.2)
BUA Cement Plc will host a conference call for investors and analysts on 14 March 2024 at 3:00 pm (New York: 10:00 am, London: 2:00 pm and Johannesburg: 4:00 pm) to discuss its Audited Financial Results for the 12-month period ended December 2023, which can be downloaded here. Also, the presentation for the conference call will be made available, an hour before the call and can be downloaded here.
To participate, kindly click this link to register and join the conference
Currently, the fourth most capitalised company of the Nigerian Exchange Group (NGX). BUA Cement is committed to quality – a differentiating attribute, driven by its people, innovation, and technology; and positioned to solve Nigeria’s cement under capacity while driving economic growth and development. More information can be found at www.buacement.com
