BUA Cement, under the leadership of Nigeria’s second-richest man Abdul Samad Rabiu, has reported yet another impressive financial performance, with its revenues during the nine-month period of the 2023 fiscal year surpassing $420 million.
The company’s resilience in the face of intense competition within the cement industry is evident as its nine-month revenues have surged to $426.4 million, up 27.9 percent from the previous year’s figures.
This underscores the remarkable financial success of BUA Cement, led by Rabiu, a prominent industrialist who has not only solidified his standing as Nigeria’s second-richest man but also secured the fifth spot among the wealthiest people on the African continent.
BUA Cement fortifies its foothold in the African cement industry
The company’s recently published financial results reveal that its revenue witnessed a remarkable boost, growing from N262.6 billion ($333.3 million) during the nine months of 2022 to N335.9 billion ($426.4 million) in the corresponding period of 2023. This solidified BUA Cement’s position as a major player in the African cement industry.
In the third quarter of 2023, BUA Cement experienced a significant increase in revenue, with a surge in cement sales driving the figure from N74.04 billion ($94.02 million) in Q3 2022 to N114.8 billion ($145.74 million) in the same quarter this year.
As a result of the surge in direct costs and operating expenses, the company’s profit showed marginal growth, increasing from N74.01 billion ($94.02 million) in the nine months of 2022 to N76.07 billion ($96.64 million) in the nine months of 2023.
The profit would have reached N100 billion ($127 million) if not for the net exchange loss of N26.9 billion ($34.2 million) incurred during the period.
Abdul Samad Rabiu’s wealth anchored in lucrative BUA Cement stake
BUA Cement, a Lagos-based cement manufacturer, is the second-largest cement producer in Nigeria, boasting a total installed capacity of 11 million metric tonnes per annum.
Its financial strength is further demonstrated by the growth of its total assets, which rose from N874.01 billion ($1.11 billion) at the beginning of the year to N1.02 trillion ($1.296 million) as of September 2023. However, its retained earnings declined from N194.9 billion to N176.13 billion during the same period.
Rabiu, who owns a 97.83 percent stake in BUA Cement, is the second-richest man in Nigeria. His wealth is primarily derived from his cement business, with Bloomberg estimating his net worth at $5.53 billion, while Forbes pegs it at $6.8 billion.
