Nigerian billionaire Abdul Samad Rabiu’s BUA Cement to distribute $45.4-million dividend

Feyisayo Ajayi -

Key Points: 

  • BUA Cement recommends a record $44.46-million dividend, reflecting strong financial performance in 2023. 
  • Amid hurdles, BUA Cement showcased its resilience and achieved a 13-percent growth in gross profit, amounting to $113.75 million in 2023. 
  • The cement maker’s assets exceed $750 million, solidifying its position as the second-largest cement company in Nigeria. 

BUA Cement Plc, a leading cement manufacturer led by Abdul Samad Rabiu, Nigeria’s third-richest man, is poised to present a final dividend payout of N67.74 billion ($44.46 million) for approval by shareholders at its upcoming Annual General Meeting (AGM).

The dividend, equivalent to N2 ($0.0013) per share, pending approval, will be disbursed from BUA Cement’s retained earnings. Shareholders registered as of Aug. 9, 2024 will receive electronic payments on Aug. 29, 2024.

BUA Cement reports strong revenue growth

At the AGM, scheduled for Aug. 29, 2024, at the Congress Hall, Transcorp Hilton Hotel in Abuja, BUA Cement’s board will also review the audited financial statements for the fiscal year ending December 2023. The company reported a robust 27.4-percent increase in revenue, reaching N460 billion ($284.4 million) from N361 billion ($223.2 million) in 2022, reinforcing its position in Africa’s cement sector.

Despite economic headwinds such as currency devaluation and rising operational costs, BUA Cement achieved a 13-percent growth in gross profit, totaling N183.96 billion ($113.75 million) in 2023. However, net profit declined by 31.2 percent to N69.45 billion ($42.94 million), primarily due to foreign exchange losses and higher expenses.

BUA Cement records growth in assets, despite earnings drop

BUA Cement, the second-largest cement producer in Nigeria and a key subsidiary of BUA Group, owned by Africa’s sixth-richest individual, Abdul Samad Rabiu, maintains a dominant market presence and boasts an annual production capacity of 11 million tonnes. The company’s commitment to innovation and sustainability underscores its role in Africa’s industrial growth.

Despite a decrease in retained earnings to N169.52 billion ($104.8 million) as of Dec. 31, 2023, from N194.88 billion ($120.5 million) a year earlier, BUA Cement’s total assets surged from N874 billion ($540.4 million) to N1.215 trillion ($751.04 million) during the same period.

BUA Cement prioritizes shareholder rewards

The proposed dividend payout highlights BUA Cement’s solid financial standing and commitment to rewarding shareholders amidst challenging market conditions. As the company prepares for its AGM, the focus remains on sustaining growth and navigating economic volatility.