BUA Cement Plc has announced a leap in revenues by 19.3 per cent to N209.4 billion in 2020 compared to N175,5 billion in 2019.
This is as the firm announced plans to commission additional production lines, to raise the its’ current cement capacity of 11 metric tons per annum in 2021 to 20 metric tons per annum by 2022.
Chairman, Board of Directors of BUA Cement plc, Alhaji Abdul-Samad Rabiu disclosed the plan to the shareholders of the firm on Thursday in Abuja at 5th Annual General Meeting (AGM) of the cement firm.
Rabiu informed BUA shareholders that, efforts were on for the commissioning of kalambaina line-3, which, according to him, will add 3mmtpa to the existing 8mmtpa in 2021.
Presenting statement of accounts to the company’s shareholders, Rabiu said the company experienced growths in all performance indexes notwithstanding Covid- 19 pandemic challenges.
Addition of new lines to the existing ones, BUA board believes, is a strategy to taming insatiable and sustained demand for cement, which leads to exorbitant prices to detriment of builders and potential home owners.
While revenue grew by 19.3 percent in the year under review, he said volumes rose to 5.1 million tons, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 18.0 % to N96.8 billion from N81.9 billon in 2019.
“With EBITDA margin being resilient at 46.2 %, we also recorded 19.4% growth in Profit After Tax (PAT) to N72.3 billion and 19.6 % rise in Earnings Per Share (ESP) to N2.14 from N1,79 as at 2019”.
“In view of our sustained performance, the board has recommended for your approval a dividend of N2.067 per ordinary share”, he informed BUA’s shareholders.
Speaking in an interview with the media, BUA chairman advocated for more players in cement industry, noting that the quantity of cement produced by BUA, Dangote and Nafaj could not meet the demand considering the high population of the country of about 220 million people.