BUA Cement Plc, a prominent cement manufacturing company headquartered in Lagos and led by Nigeria’s second-richest man Abdul Samad Rabiu, reported a robust financial performance for its 2023 fiscal year. The company’s revenue surpassed $280 million, solidifying its position as a leading cement producer in Africa.
The recently published financial report highlights a remarkable 27.4-percent surge in revenue, rising from N361 billion ($223.2 million) in 2022 to N460 billion ($284.4 million) in 2023. Despite grappling with challenges such as increased input prices and elevated energy costs, BUA Cement demonstrated resilience, achieving a 13-percent growth in gross profit, totaling N183.96 billion ($113.75 million) in 2023.
However, the company faced a noteworthy setback in profit, experiencing a 31.2-percent decline from N101.01 billion ($62.44 million) in 2022 to N69.45 billion ($42.94 million) in 2023. This downturn is attributed to factors including foreign exchange losses amounting to N69.96 billion ($43.25 million), alongside heightened administrative expenses and distribution and selling expenses throughout the fiscal year.
Abdul Samad Rabiu’s BUA Cement: Navigating challenges, expanding assets, and securing growth
As the second-largest cement company in Nigeria, BUA Cement operates under the extensive umbrella of Rabiu’s conglomerate, BUA Group. Rabiu, the fifth-richest individual in Africa, commands a significant portion of his wealth through his 96-percent ownership stake in BUA Cement.
The company boasts an impressive installed capacity of 11 million tonnes per year and plays a pivotal role within BUA Group, acknowledged as one of Africa’s fastest-growing manufacturing and industrial conglomerates.
Despite the dip in profit after tax, BUA Cement exhibited resilience in its financial standing. While the company’s retained earnings decreased from N194.88 billion ($120.5 million) as of Dec. 31, 2022, to N169.52 billion ($104.8 million) as of Dec. 31, 2023, its total assets experienced substantial expansion, surging from N874 billion ($540.4 million) to N1.215 trillion ($751.04 million).
The formidable financial performance of BUA Cement in 2023 underscores its enduring strength within Nigeria’s cement industry. Despite facing challenges, the company’s strategic initiatives and steadfast growth trajectory position it for sustained success in the years ahead, solidifying its status as one of Africa’s leading cement producers and Abdul Samad Rabiu as a key player in the continent’s business landscape.
