BUA Cement held its 8th Annual General Meeting today. According to the financial report presented by the Board of the company, it recorded a strong revenue growth of 27.4% to N460 billion (2022: N361 billion), resulting from its increasing market share. However, with the devaluation of the Naira in June 2023, and its continued depreciation, as well as growing inflation, the Company experienced increasing price pressures which affected production costs, which increased by 39.5% to N276 billion (2022: N197.9 billion).
Within this period under review, a net foreign exchange loss of N70 billion (2022: N5.5 billion) was recorded, with N52.5 billion attributed to finance costs. This was associated with the construction of an additional 3mmtpa lines at Obu and Sokoto, and the sum of N17.5 billion was attributed to foreign trade payables. Despite these challenges, the Company reported a net profit after tax of N69.5 billion.
According to the Managing Director/ CEO, Yusuf Binji: In 2023, we achieved a 7.3% increase in dispatch volumes to 6.7 million metric tons per annum from 6.3 million metric tons per annum in 2022. This led to the growth of our market share to 24% from 21% during the prior year. Furthermore, the company cold-commissioned the new 3mmtpa lines at the Sokoto and Obu Plants and activated a new 70MW gas power plant in Sokoto. We eagerly await the activation of the 70MW gas power plant at Obu during the first quarter of 2024. Also, over 500 new trucks were procured to support our distribution activities, which further deepened our market presence. We believe these investments further 'Reinforces our Purpose,' which is to be "A highly competitive leader in Nigeria", as we address not only the housing and infrastructure needs in a sustainable manner but also seek out innovative ways to make cement affordable".
He further stated: "As a corporate organization, we will continue to implement and pursue our strategic goals of expansion and increasing market share, as well as explore solutions that will enable us to sustain value creation for our shareholders and other stakeholders.
The Chairman, Abdul Samad Rabiu (CFR, CON), in his words to the shareholders: "Despite the reduction in our bottom line, our unwavering commitment to shareholder value, together with the strength and confidence in the business and its outlook inspired the Board to recommend a dividend of ₦2 per share for the year ended 31 December 2023." He also commended the shareholders for their support towards the company, which has contributed immensely to the resilience of the company and its profitability. While the chairman reiterated the commitment of the company to making cement accessible and affordable, he listed various strategic moves being taken to address this. This include the LNG project to power the production lines and the ongoing construction of Obu Line 4 in Ososo, Edo State.
One of the highpoint of the 8th Annual General Meeting was the elated shareholders who unanimously approved the ratification of the appointment of two new directors - Ganiat Adetutu Siyonbola, an independent Non-Executive Director, and Chikezie Ajaero, an Executive Director. The appointment of Ganiat Adetutu Siyonbola was in line with her recommendation for the position during the 2022 annual general meeting.
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