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One of Nigeria’s largest cement makers, BUA Cement Plc, has posted N65.9 billion ($160.6 million) in profit between Jan. 1 and Sept. 30, as earnings benefit from double-digit growth in revenue driven by strong growth in cement demand.
BUA Cement is a Nigeria-based cement manufacturer with a combined installed capacity of 8 million tonnes per annum and a market capitalization of N2.44 trillion ($5.94 billion), making it the second-largest cement producer on the Nigerian market and the largest cement producer in northwestern Nigeria.
The cement company was founded by Nigerian billionaire Abdul Samad Rabiu, who holds a majority 92.2-percent stake in the leading cement manufacturer.
Figures contained in the company’s Q3 filing revealed that revenues for the first nine months of its financial year, ending on Sept. 30, surged by nearly 20 percent from N156.6 billion ($381.6 million in 2o20 to N186.9 billion ($455.5 million) in 2021. The growth occurred on the back of strong demand for cement triggered by a rise in real estate development and infrastructure projects in Nigeria.
The growth in revenue, coupled with a 64-percent reduction in net-finance costs, spurred a 23-percent expansion in the cement maker’s profit from the N53.5 billion ($130.31 million) reported in 2020 to the N65.9 billion ($160.6 million) it posted in the first nine months of 2021. Meanwhile, earnings surged from N1.58 per share to N1.95 per share in the nine-month period.
Despite the growth in revenue and earnings, BUA Cement reported a 10-percent reduction in the value of its total assets from N766 billion ($1.87 billion) to N692 billion ($1.69 million), while its retained earnings decreased marginally from N159.9 billion ($389.4 million) to N155.8 billion ($379.5 million) on account of dividend payments and capital purchases.
As of press time, Oct. 27, shares in the cement tiger were trading at N72 ($0.1753) per share, 6.92-percent lower than its opening price of N77.35 ($0.1884) at the beginning of the year.
At the current stock valuation, the market value of Rabiu’s 92.2-percent stake in BUA Cement is worth N2.25 trillion ($5.47 billion), making him the second-richest investor on the Nigerian Exchange behind fellow billionaire, Aliko Dangote.
