BUA Cement Plc has declared a significant revenue growth of 27.4% in 2023, with a net revenue of N460 billion, an increase from N361 billion reported in 2022. This was revealed by the chairman of the company, AbdulSamad Rabiu, at the eighth Annual General Meeting (AGM) which took place in Abuja.
The company also reported an enhancement in capacity utilization; it moved from 59.8% in 2022 to 61.2% in 2023 because there were more cement volumes dispatched. This increase in volumes led to an increase in market share.
However, profit after tax declined by 31.2% to N70 billion, down from N101 billion that was recorded last year, due to foreign exchange losses resulting from devaluation and continued depreciation of the naira.
Despite these challenges, the company remains committed to shareholder value and has announced a dividend of N2 per share for the year ended December 31, 2023.
The operating environment in 2023 was not friendly, as global growth fell to 3.2% while global inflation rose to 6.8%. This slowdown resulted in sub-Saharan Africa’s economic growth shrinking to 3.3%, composed mainly of global downturns related to weather shocks as well as supply-side problems.
During his address, the managing director of BUA Cement, Yusuf Binji, pointed out some of the major issues that affected them during this period, like the Currency redesign policy by the Central Bank of Nigeria (CBN), the General Elections 2023, and Foreign Exchange Volatility, among others.
