Nigerian billionaire Abdul Samad Rabiu’s BUA Cement posts $147.7 million in profit in H1 2022

BUA Cement Plc, a leading cement group led by Nigerian billionaire Abdul Samad Rabiu, reported a stellar performance at the end of the first half of its 2022 fiscal year.

The outstanding financials come despite challenges in the company’s operations due to a surge in input prices and expenses, which harmed the performance of many top performing companies.

According to figures in its recently published half year report, BUA Cement earned a record half-year profit of N61.36 billion ($147.7 million), which is 41.4-percent higher than the N43.4 billion ($104.5 million) that it earned at the end of the first half of 2021.

The double-digit increase in earnings was driven by an increase in revenue from N124.27 billion ($299.3 million) to N188.56 billion ($454.1 million) during the period under review, owing to pricing benefits, an increase in production volume, and higher demand for cement.

Earnings during the first half period were hampered by higher selling and distribution costs, and administrative and interest expenses totaling N3.22 billion ($7.75 million) incurred during the period under review.

As a result of the strong performance, the group’s total assets increased by more than 18 percent, rising from N728.5 billion ($1.75 billion) in January to N861.04 billion ($2.07 billion) as of June 30, while shareholder equity rose from N398.48 billion ($959.6 million) to N459.5 billion ($1.11 billion).

As part of its efforts to boost revenue and earnings, BUA Cement is considering obtaining a loan from the International Finance Corporation to expand its integrated cement plant in Kalambaina, Sokoto State, Nigeria, which will include increasing capacity from 2 million tonnes per annum to 8 million tonnes per annum and developing ancillary utilities.

As of press time, the group’s shares were trading at N69.3 ($0.166) per share, unchanged from their opening price on the local bourse this morning, as investors continue to digest financial and economic data to make informed decisions amid fears of a global recession.