BUA Cement Plc, Nigeria’s second-largest cement company, has released its 2020 Full Year Audited Financial Results with the company declaring a Profit After Tax of N72.3billion representing a 19.4% increase over the corresponding period in 2019.
BUA Cement’s revenues also grew to N209.4billion in 2020 from N175.5 billion, as at FY2019.
Providing valuable insights to the FY2020 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 also emphasized the importance of product design and how BUA’s current offerings adequately cater to the cement needs of its customers, resulting in sustained growing market acceptance.
He added that it was even more noteworthy that significant milestones were attained despite the harsh economic conditions brought about by the pandemic.
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“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.
This showcases the thought and dedication that is deeply engraved into our product design processes, with the customer’s need at the centre of everything we do.
Our performance for the year 2020 witnessed a 13.3% rise in cement dispatched to 5.1mmt, which resulted in a 19.3% rise in revenues to N209.4 billion; along with an 18% rise in EBITDA to N96.8 billion from N82 billion, as at FY2019. EBITDA margin remained resilient at 46.2%; nevertheless, we expect margin expansion, resulting from performance growth and efficiency gains.
Driven by the need to prioritise efficiency led by innovation, a continued focus on cost containment measures and despite the devaluation of the Naira, which impacted pricing of some input costs, operating profit increased by 14.8% to N82 billion. Consequently, Profit after Tax (PAT) increased to N72.3 billion.
In line with our goals to become the leading cement manufacturer with significant eco-friendly footprints, we set out key strategic targets to enhance growth and transform our operational processes towards a cleaner and more efficient company. We are delighted to have achieved a significant number of these set targets including the construction of the Kalambaina line-3, where we remain on course to commission the plant in 2021”.
- Financial Highlights
Table 1: Performance Highlights
| Metric | FY 2020 | FY 2019 | |
| Volume (kt) | 5,100 | 4,501 | 13.3% |
| Revenue (N’m) | 209,443 | 175,518 | 19.3% |
| EBITDA (N’m) | 96,766 | 81,985 | 18.0% |
| EBIT (N’m) | 82,022 | 71,428 | 14.8% |
| EBITDA margin | 46.2% | 46.7% | – |
| PBT (N’m) | 78,873 | 66,225 | 19.1% |
| PAT (N’m) | 72,344 | 60,610 | 19.4% |
| EPS (N) | 2.14 | 1.79 | – |
| ROAE[1] | 19.6% | 18% | – |
| Leverage[2] | 1.7x | 1.4x | – |
[1] Net profit divided by average total equity
[2] Average total asset divided by average total equity
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