Home Business BUA Cement Posts Impressive Unaudited H1 2020 Financial Results

BUA Cement Posts Impressive Unaudited H1 2020 Financial Results

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BUA Cement Plc, has announced an impressive 2020 half-year results declaring revenue of N101.3billion and a Profit After Tax of N34.82billion representing an increase of 12.7per cent and 13.74per cent respectively from the corresponding period in 2019.

This was contained in a filing to the Nigerian Stock Exchange.

Speaking on the results, Managing Director of BUA Cement, Yusuf Binji said that the continued impressive performance in 2020 despite the challenging operating environment occasioned by the COVID-19 pandemic, was a pointer to the value and strength of the BUA Cement brand and product offerings as well as a nod to the excellent implementation of the company’s Business Continuity Plan which ensured that BUA Cement was able to withstand the impact of the pandemic in the period under review.

“Our resilient performance continues to showcase the value and strength in our product offering alongside our strategic business model. Our revenues increased by 12.7per cent to N101.3 billion from the corresponding period in 2019 whilst Operating profits increased by seven per cent, from N38.1 billion in H1’2019 to N40.8 billion in H1’2020. Equally, EBITDA margin improved in this quarter to 48.1% – an improvement from 45.6per cent in Q1, 2020.”

“In a bid to further drive cost efficiencies and sustainability, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) at the Kalambaina, Sokoto State and the management of our mining operations. Given these deliberate and strategic choices amongst other cost management efforts, we continue to combine development and innovation into our offerings and activities,” Binji added.

On the impact of the pandemic on the business, Binji noted that, “despite the prevailing economic conditions, we are quite optimistic about the future because it affords us not only with the opportunity to further evolve our business model but also provides an opportunity for accelerated development. We will continue to push to new markets aided by a focused distribution strategy.”

It should be noted that BUA Cement has also been actively involved in alleviating the impact of the virus on the most vulnerable in society while also supporting the government’s efforts by providing foodstuff, PPEs and medical equipment to host communities amongst others.

Financial Highlights

Revenue increases by 12.7per cent from N9 billion in H1’2019 to N101.3 billion, as at H1’2020

EBITDA increases by 5.8per cent from N8 billion in H1’2019 to N47.4 billion, as at H1’2020 (Quarter-on Quarter (q/q), EBITDA margin increases from 45.6per cent in Q1’2020 to 48.1per cent, as at Q2’2020)

Operating profit up 7.0%, from N1 billion in H1’2019 to N40.8 billion in H1’2020

Profit before Tax (PBT) increases by 9.8% from N7 billion, as at H1’2019 to N39.2 billion, as at H1’2020.

Profit after Tax (PAT) up by 13.7per cent, from N61 billion in H1’2019 to N34.8 billion, as at H1’2020,

Earnings Per Share (EPS) increases by 14.4per cent from N90 kobo in H1’2019 to N1.03 Kobo, as at H1’2020

Operational Highlights

Cement volume dispatched up 7.9per cent from 2,282 kt in H1’2019 to 2,463 kt, as at H1’2020; underpinned by growing market acceptance, our COVID business continuity plan and particularly, a business environment not inundated by the Coronavirus pandemic

To boost energy efficiency and reduce energy costs, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) for the Kalambaina operations and management of our mining operations

Continued push to ‘new markets’ aided by a focused distribution strategy

 

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