Bua Cement Plc has released its financial statement for the second quarter ending June 30, 2021, which revealed the company recorded revenue of N63.09 billion to reflect a growth of 33.41% from N47.29 billion in 2020.
Similarly, the report stated that net income increased by N6.16 billion, reflecting a growth of 41.43% from N14.87 billion recorded in the corresponding period of 2020 to N21.03 billion in the current period. From the previous quarter (Q1) however, the company showed a decline in its net profit by N1.34 billion.
BUA Cement Plc generates its revenue from the sale of cement and generates other income mainly through haulage, sundry income and insurance claims. The notes to account further revealed that the majority of other income came from sources other than the company’s business operations.
Furthermore, the financial report revealed that marketing expenses and other overheads for the half-year period grew as high as 592.04% and energy cost increased by 9.41%.
Bua Cement’s net assets as of the period stood at N349.35 billion, representing a decline from N375.95 billion recorded as of 31st December 2020. Earnings per share went up 50% from 44 kobo in the same period of 2020 to 66 kobo in Q2 2021
Earlier In the month, the cement producing company, increased the ex-factory price of its cement by 7%. Meanwhile, in several statements issued by the company between April and June 2021, it said, “The company had no plans to increase prices of its cement now or in the near future.”
At the most recent AGM held in Abuja on the 8th of July, Abdul Samad Rabiu, Chairman of BUA Cement, whilst addressing shareholders and the press, canvassed more investments in the cement industry saying that current national production levels were not enough to meet the ever-increasing national demand for cement which was increasing at a rate over 3million metric tonnes per annum. He, therefore, encouraged other investors to develop new cement plants.
On the same day, dividends of N70 billion at N2.067k per ordinary share was paid to shareholders.
What you should know
The Q1 2021 unaudited result of BUA Cement Plc showed that revenue grew by 13.39% from N53.97 billion in Q1 2020 to N61.19 billion in Q1 2021. In the same vein, net profit for the period grew by 13.04% from N19.79 billion to N22.37 billion.
Bua Cement Plc is currently trading at N68.00 per share and its market capitalization stands at N2.30 trillion as of Friday, July 30, 2021. Year-to-date performance shows that the share price of the company has declined by 12.09%.