By Peter Egwuatu
BUA Cement Plc, Nigeria’s second largest cement company has recorded increased Profit After Tax, PAT by 19.4 per cent to N72.3 billion for the financial year ended December 31, 2020 as against N60,6 billion in the corresponding period of 2019.
The Company’s audited financial result released on the Nigerian Stock Exchange, NSE showed that revenues also grew to N209.4billion in 2020 from N175.5 billion in full year 2019. Return on equity rose by 1.5 per cent to 19.6 per cent from 18 per cent in 2019. Other performance indicators showed that operating profit increased by 14.8 per cent to N82 billion from N71.4 billion in 2019, while Earning Before Interest, Tax Depreciation and Amortization, EBITDA grew by 18 per cent to N96.8 billion from N82 billion, as at 2019 with EBITDA margin resilient at 46.2 per cent as against 46.7 per cent in 2019.
Providing valuable insights to the 2020 financial performance alongside the operational activities for the year, Yusuf Binji, Managing Director/CEO of BUA Cement, highlighted the preparedness and positive impact the activation of the Company’s Business Continuity Plan had on performance.
He said: “Undeniably, the challenges in 2020 have been unprecedented, given the outbreak of the Coronavirus and the disruption caused across homes, communities and organisations.
Despite its lingering effect, we witnessed the best of humanity – resilience, as individuals and organisations sought for opportunities to support vulnerable communities, with BUA Cement playing a crucial role in cushioning its effect through its donations.
“Supporting this resilient performance was our well instituted contingency plan, which ensured that we remained largely immune to economic disruptions such as: production, supply and distribution shocks resulting from the lock down; the observed shift by investors to alternative investment asset classes; and the low rain fall recorded during the year. More importantly, our product offerings played a vital role, with more customers being increasingly able to appreciate and differentiate how tailored our products are towards meeting their cement requirements, especially in terms of quality and product support, among other features.”
He added: “Our performance for the year 2020 witnessed a 13.3 per cent rise in cement dispatched to 5.1mmt, which resulted in a 19.3 per cent rise in revenues to N209.4 billion; along with an 18 per cent rise in EBITDA to N96.8 billion from N82 billion, as at 2019. EBITDA margin remained resilient at 46.2 per cent; nevertheless, we expect margin expansion, resulting from performance growth and efficiency gains.”