BUA Cement Plc, the cement company owned by Nigerian billionaire Abdul Samad Rabiu, posted a profit of $168.4 million at the end of the first nine months of its fiscal year in 2022, putting him on track for another juicy dividend in 2023.
The leading cement manufacturer’s profit figures increased by 12.3 percent during the first nine months of its 2022 fiscal year, from N65.9 billion ($145 million) during the same period of 2021 to N74 billion ($168.4 million), as cement sales increased by double digits.
The group’s ability to maintain a double-digit increase in earnings and revenue despite challenges in its operating environment, particularly the rise in energy prices, can be attributed to recent investments in capacity, a move that reaffirms its commitment to building production infrastructure into a market leader in Africa’s cement industry.
Its revenue rose by 40.5 percent from N186.9 billion ($425.1 million) to N262.6 billion ($597.4 million) as it continues to benefit from higher demand and an optimal level of operations thanks to its state-of-the-art facilities, which ensure efficiency in energy utilization in the cement production process.
As a result of the group’s strong financial performance, assets increased significantly from N728.5 billion ($1.66 billion) to N781.6 billion ($1.78 billion), while retained earnings fell from N181.9 billion ($413.6 million) to N167.9 billion ($382 million) due to the group’s dividend payout this year.
During the review period, the leading cement manufacturer opened a 3-million-metric-tonne cement factory in Sokoto, a state in Nigeria’s northwest, as part of its expansion plans to meet the country’s ever-increasing cement demand, as well as regional exports to other countries.
The new plant’s commissioning complements BUA Cement’s midterm plan to increase production capacity as it seeks to consolidate its cement industry leadership over Lafarge Africa Plc, a subsidiary of the Swiss multinational company, LafargeHolcim.
As part of its efforts to boost earnings and valuation, the cement maker is considering obtaining a loan from the International Finance Corporation to expand its Kalambaina cement plant in Sokoto State, increasing the plant’s nameplate capacity from 2 million tonnes per annum to 8 million tonnes per annum and developing ancillary utilities.
One of Africa’s wealthiest billionaires, Rabiu derives the majority of his fortune from his 92-percent stake in BUA Cement.
Through his manufacturing conglomerate, BUA Group, he indirectly owns the majority of the cement manufacturer.