BUA Cement’s half-year profit jumped 41% as sales hit N188.6bn

by Abdul Samad Rabiu BUA Cement posted a 41.4 percent improvement in net profit for the first half of the year following strong revenue growth, according to the company’s earnings report for the period released on Monday. Turnover stood at N188.6 billion, up 51.7 percent compared to the same period last year. the cement manufacturer received a tremendous boost in other income, amounting to N200.1 million, after the value of insurance claims increased more than sevenfold. Profit before tax rose 30.5% to N32.5bn, while profit after tax increased to N28.2bn, improving more than a third from a year ago. On the expense side, costs increased from N42.2 billion to N63.4 billion as a direct result of a significant increase in cost of sales and generally pressure from Nigeria core inflation which, at 15.8% in June, had advanced 2.7% in twelve months. Abdul Samad Rabiu, president BUA Cement The net profit margin, a measure of how much of the revenue has been turned into profit, fell from 34.9% to 32.5%. Put another way, BUA Cement made approximately one-third of the net profit from each bag of cement it sold during the period. In March, three employees of a contractor performing routine maintenance at a BUA Cement facility in Sokoto were swept to death after an inferno sparked by a diesel storage tank they were working on. BUA Cement is controlled by Rabiu, the second-richest person in Nigeria and the fifth-richest in Africa, whose wealth according to Forbes estimates is currently $7 billion. Mr. Rabiu owns 99.99 per cent of BUA Cement’s shares despite the fact that Nigeria’s stock market laws prohibit that level of control. And the company has been in contravention of that regulation called the free float rule since it was first listed on the Nigerian Stock Exchange in January 2020. Shares of BUA Cement closed trading on Lagos’s Custom Street on Monday at N69.30 per unit, without registering any movement. Read More Related News Here Let here it in the comment below if you do have an opinion on this; BUA Cement’s half-year profit jumped 41% as sales hit N188.6bn