BUA Cement Plc, a leading Nigerian cement producer, reported a profit after tax of N69.45 billion for the financial year of December 2023.
This represents a 31.2% decline compared to the N101.01bn profit recorded in 2022.
BUA Cement experienced a foreign exchange loss of N69.95bn in 2023, compared to just N5.50bn in 2022.
Similar to other manufacturing companies in Nigeria, BUA Cement was impacted by the weakening naira, which led to increased costs associated with imported materials and equipment.
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Key highlights
- Revenue N459.99 billion from N360.98 billion in 2022, +27.75% YoY
- Gross profit N183.95 billion from N162.60 billion in 2022, +13% YoY
- Operating profit N74.69 billion from N129.71 billion in 2022
- Profit after tax N69.45 billion from N101.01 billion in 2022, –31.2% YoY
- EPS N2.05k per 50k share from N2.98k in 2022
- Dividend Announced N2 per share versus N2.8 per share
- Outstanding Shares 33.8 billion shares
According to BUA, the foreign exchange loss relates to “the portion of the exchange losses arising from foreign currency borrowings eligible to be capitalized as part of the borrowing costs for capital projects” under construction.
BUA Cement’s foreign loan is estimated at $291.1 million and is a 9-year term loan granted by IFC and other lenders (African Finance Corporation, African Development Bank, and Deutsch Investitions) on April 27, 2023.
There is a moratorium on principal repayments until 2025 and interest is payable semi-annually at a variable interest rate of 6-months term SOFR+5.5%. The facility will mature in December 2032.
Despite the profit drop, BUA Cement’s share price closed flat at N150 per share.
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