BUA Cement Plc, a leading cement manufacturer led by Nigeria’s third-richest man Abdul Samad Rabiu, announced its financial results for the first quarter of 2024. The company showcased robust revenue growth, surging past $110 million, yet faced a notable decline in profit due to escalating costs and currency devaluation.
BUA Cement revenue soars 51 percent
In the unaudited financial report released by the company for the period ending March 31, 2024, BUA Cement reported a remarkable 51.51-percent year-over-year increase in revenue, reaching N161.13 billion ($118.85 million), compared to N106.35 billion ($78.45 million) in the same period in 2023. This solidifies its position as one of Africa’s leading cement producers.
Cement revenue soars, profit slips
The surge in revenue was attributed to a recent uptick in cement prices combined with escalating demand. Despite this impressive revenue growth, the company experienced a significant profit decline of 32.95 percent, with profits dropping to N17.97 billion ($13.25 million) from N26.80 billion ($19.77 million) in Q1 2023.
Rising energy costs and raw material prices were cited as primary factors impacting profit margins. Additionally, the devaluation of the Nigerian naira resulted in a foreign exchange loss of N10.055 billion ($7.42 million) during the quarter.
Rabiu’s BUA Cement: A manufacturing powerhouse
BUA Cement, operating under the vast umbrella of Abdul Samad Rabiu’s conglomerate, BUA Group, maintains its position as the second-largest cement company in Nigeria. Rabiu, who ranks as the sixth-richest individual in Africa, holds a significant 96 percent stake in BUA Cement, contributing substantially to his wealth.
With an impressive installed capacity of 11 million tonnes per year, BUA Cement plays a crucial role within BUA Group, recognized as one of Africa’s fastest-growing manufacturing and industrial conglomerates.
BUA Cement resilient despite cost pressures
Despite facing challenges in the cost environment, BUA Cement remains financially resilient. Total assets for the company increased to N1.24 trillion ($919 million) from N1.21 trillion ($896.72 million) in 2023. Moreover, retained earnings demonstrated growth, expanding by 10.6 percent to N187.49 billion ($138.29 million) from N169.52 billion ($125.04 million).
The financial results underscore BUA Cement’s ability to navigate through challenging market conditions while maintaining its strong market presence and financial stability. As the company progresses through 2024, it aims to address cost challenges and sustain its growth trajectory in the competitive cement industry.
