Nigerian billionaire Abdul Samad Rabiu’s BUA Cement posts $79.7 million in profit in Q1 2022

BUA Cement Plc, a leading Nigerian cement manufacturing companies led by Nigerian billionaire businessman Abdul Samad Rabiu, reported a profit of N33.14 billion ($79.74 million) at the end of the first quarter of its 2022 fiscal year, as the cement company builds on its impressive financial performance in 2021.

According to a quarterly filing released on Friday, the cement maker’s profit in the first three months of 2022 increased by 48.2 percent from N22.37 billion ($53.8 million) in the first quarter of 2021 to N33.14 billion ($79.74 million) in the same period of 2022.

The double-digit percent increase in earnings was driven by a 58.5 percent increase in revenue from N61.2 billion ($147.26 million) to N97 billion ($233.41 million), which comes on the heels of the leading cement maker commissioning a 3-million-metric-tonne cement factory, increasing its production capacity to 17 million metric tonnes.

The group’s total assets increased from N728.51 billion ($1.75 billion) to N783.73 billion ($1.9 billion) as a result of the strong earnings growth, while retained earnings increased from N181.92 billion ($437.75 million) to N215.06 million ($517.5 million).

The cement company’s impressive financial performance in the first quarter of 2022 suggests that it is on track to deliver yet another record performance at the end of its fiscal period, which is expected to strengthen the company’s financial standings and valuation on the local bourse.

The cement tiger’s profit increased by 24.5 percent in 2021, from N72.3 billion ($174 million) at the end of 2020 to N90.08 billion ($216.7 billion): this is the cement company’s highest profit since its inception in 2008.

Earnings growth in the double digits can be attributed to a surge in cement demand, which was fueled by renewed interest in real estate assets and an increase in government infrastructure spending.