BUA Cement’s mid-year sales cross N124 billion amid real estate boom after lockdowns

The turnover of BUA Cement PLC from the inception of the year to June touched N124.3 billion, with the height of growth approaching one quarter over what posted in the corresponding period of last year, the half year financials of Nigeria’s fourth most capitalised company showed on Friday.

The firm rode on a sweeping boom in building and construction that stoked cement demand as Nigeria reopened to economic activities following coronavirus lockdowns to report substantial growth across key performance metrics, with profit margin – an indicator of how much of profit comes from revenue – standing at 34.9 per cent.

In November, the cost of a 50kg bag of cement rocketed by one-third to N3,600, a Nigerian property developer told Reuters in May, and a finding by PREMIUM TIMES this month confirmed a recent hike of N300 in the factory price of each bag of the binder leaving BUA’s factory.

The company looks to up output by as much as 3 million metric tonnes come year-end, the entire bulk coming from a new plant in Guyuk in the north-east.

For the half-year period, pre-tax profit climbed 26.9 per cent higher to N49.7 billion, just as profit after tax was stronger by one-fourth at N43.4 billion.

Shares in the cement-maker were trading up 1.04 per cent at N67.30 per unit in Lagos at 12:50 WAT.

Yet, there was a slight concern raised on the asset side of the financials, coming from a depletion by almost half in total current assets.

Here, cash and short term deposits tumbled from N123.821 billion to N57.326 billion, mounting pressure on the company’s capacity to meet its urgent financial obligations when they fall due.