BUA Cement projects N241.9bn revenue

BUA Cement Plc has projected to increase its revenue by 15. 5 per cent to N241.9 billion at the end of second half of 2021 financial year.

The group in its outlook for second half of 2021 said it is largely on course, having achieved 51.4 per cent of its full year revenue projection in the first half of 2021 by pushing out more volumes and increasing prices.

The group explained that at the start of the year, it had anticipated the group’s additional 3mmt capacity in Sokoto to support volume growth during the year, adding that the new 3mmt line will be commissioned by year end owing to pandemic-related setbacks.

But in the third quarter and fourth quarter of 2021, the group expected revenue growth to be relatively strong, driven by demand, albeit somewhat de-emphasized by seasonal rains particular to third quarter as well as the high base of the same period last year.

Presenting half year result for 2021, to investors and analysts, the company said that Profit after Tax (PAT), up by 24.6 per cent to N43.4 billion from N34.8 billion, as at first half of 2020.

During the period under review, EBITDA rose by 23.6 per cent to N58.4 billion from N47.3 billion recorded in the first half of 2020..

A breakdown of the major drivers revealed that Revenue increased by 22.7 per cent or N23 billion to N124.3 billion from N101.3 billion reported in the same period of 2020, a combination of increased sales volume, together with

“bonus discount” adjustments.

Cost of sales rose by 19.1 per cent or N10.6 billion to N66.2 billion compared with N55.5 billion reported the same period of last year.

The increase led primarily by higher input materials cost and increased sales volume.

The result showed that Selling, Distribution and Administrative costs (net) increased by 24.3 per cent or N1.48 billion to N7.6 billion as at the end of June this year from N6.1 billion achieved in the comparative period of 2020.

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