Abdul Samad Rabiu’s BUA Cement posted an appreciable growth in top-line as well as in bottom-line for last quarter, according to its unaudited earnings report for the period issued Friday, coming after its new cement factory launched this year in January.
Sales quickened by 58.5 per cent to N97 billion, the new plant lifting the corporation’s nameplate by 3 million metric tonnes per annum (mtpa).
Fairly strengthening earnings, other income soared seven times over to N186 million, riding on the back of insurance claims, which contributed 88.7 per cent to that income class.
The management slashed net finance costs – the cash spent on servicing borrowed funds – by as much as 96.5 per cent, helping to lighten the weight of spending on revenue.
Post-tax profit scaled up to N33.1 billion, 48.2 per cent more than what was realised a year earlier.
Profit margin stood at 34.2 per cent which, put another way, suggests the cement-maker made a net profit of N34.20 on every N100 it spent last quarter.
BUA Cement, Nigeria’s fourth biggest company by market capitalisation, is setting sights on delivering two expansion projects, one in Edo State and the other in Sokoto State, each with a capacity of 3 million mtpa come 2023.
That will ramp total output capacity up to 17 million metric tonnes, chair of the company’s board Abdul Samad Rabiu said in January.
Rabiu, who is Nigeria’s second richest man and Africa’s sixth by Forbes’ estimation, holds 99.99 per cent of BUA Cement, according to the firm’s audited financials for last year. BUA Cement is worth N783.7 billion in asset terms and N2.4 trillion in market value as of Friday.
Shares in the company closed on Lagos’ Customs Street on Friday at N70.75 per unit, not recording any movement.