BUA Cement Profit Declines by 44% Amid Foreign Exchange Losses
BUA Cement Plc revealed N67.23 billion revenue before tax in 2023 fiscal year, a decrease of 44per cent from N120.15 billion reported in 2022, attributable to N69.96 billion forex loss in 2023 audited outcome and accounts from N5.5 billion reported in 2022.
The cement producing business likewise stated a revenue after tax of N69.45 billion in 2023 from N101.01 billion in 2022, on the background of N2.23 billion earnings and delayed tax credit published in 2023 from N19.14 billion tax expenditures reported in 2022.
Amidst the decrease in earnings, the board of directors of BUA Cement suggested for the approval of investors a payment of N2.00 dividend per 1 normal share of 50 kobo each, out of the revenues stated in the fiscal year ended 2023 (2022: N2.80 kobo).
In spite of growing earnings by 27.4 percent to N459.99 billion in 2023, the most recent audited outcome and accounts of BUA revealed a tough service environment amidst substantial boost in expense of production, and business expenses.
The breakdown of profits exposed that sale of bagged cement increased to N458.05 billion in 2023 from N359.08 billion in 2022, while sale of bulk cement closed 2023 at N1.95 billion from N1.91 billion in 2022.
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Main geographical markets of BUA Cement suggested that income from Nigeria stood at N456.08 billion in 2023 from N356.61 billion in 2022, while earnings outside Nigeria dropped to N3.9 billion in 2023 from N4.38 billion stated in 2022.
With the decline of the Naira last June and its ongoing devaluation, in addition to growing inflation, the Company dealt with increasing rate pressures which affected production expenses, as these increased to N276.04 billion in 2023, a development of 39.15 percent from N198.38 billion in 2022.
BUA Cement’s reported N123.27 billon energy intake in 2023 from N91.19 billion in 2022, contributing about 44.7 percent of the general expense of sales in 2023 from 45.97 percent in 2022.
In addition, a net forex loss of N70 billion (2022: N5.5 billion) was tape-recorded; with N52.5 billion credited to fund expenses, related to the building of the extra 3mmtpa lines at Obu and Sokoto (incl. other supplementary activities) and the amount of N17.5 billion credited to foreign trade payables.
As overall business expenses increase to N41.36 billion in 2023, a development of 37 percent from N30.17 billion in 2022, financing expense closed 2023 at N19.94 billion in 2023, representing a development of 89 percent from N10.55 billion reported in 2022.
BUA Cement is Nigeria’s 2nd biggest cement business and the biggest manufacturer in its North-West, SouthSouth and South-East areas; with a combined set up capability of 11 mmtpa and with strategies underway to increase existing capability to 17 mmtpa through the commissioning of 2 brand-new lines. BUA Cement runs tactically from Okpella, Edo State and Kalambaina, Sokoto State.