BUA Cement Plc, a leading cement company led by Nigeria’s second-richest ma Abdul Samad Rabiu, has reported its highest-ever profit at the end of 2021, as the cement industry continues to benefit from a surge in demand.
BUA Cement, Nigeria’s second-largest cement producer, operates with a combined installed capacity of 8 million tonnes per annum under the leadership of Rabiu, who owns 92.2 percent of the company.
Profit figures at the end of 2021 rose by 24.5 percent from N72.3 billion ($174 million) at the end of 2020 to N90.08 billion ($216.7 billion) in 2021, according to the cement maker’s financial statements.
This is the cement company’s highest profit since it began operations in 2008,. The double-digit increase in earnings was supported by a surge in cement demand, which was driven by renewed interest in real estate assets and a surge in government spending on infrastructure.
BUA Cement’s revenue increased by N209.44 billion ($503.7 million) in 2020 to N257.33 billion ($618.9 million) at the end of 2021 due to heightened cement demand in the country.
Despite its strong financial performance in 2021, BUA Cement’s assets fell from N766.3 billion to N728.51 billion ($1.75 billion) as a result of a significant drop in cash holdings, which fell from N123.8 billion ($297.8 million) to N62.34 billion ($149.9 million) at the end of 2021.
The strong performance increased shareholders’ wealth from N375.95 billion ($904.25 million) to N398.12 billion ($957.57 million), owing to an increase in retained earnings from N159.9 billion ($384.6 million) to N181.9 billion ($437.5 million).
In line with the increase in profits, the Board of Directors approved a dividend of N2.6 ($0.0063) per share to its shareholders, up from the N2.067 ($0.0050) dividend paid last year.
Dividends paid to shareholders will be subject to withholding tax at the appropriate rate at the time of payment, if approved.