BUA Cement grew its revenue to N877 billion in 2024, compared to the N460 billion it generated in 2023.
The chairman of the company, Dr Abdul Samad Rabiu, who disclosed this in Abuja on Monday at the annual report and accounts for 2024 of the company, stated that the net profit before tax also rose by 48.2 per cent to N99.63 billion.
He noted the achievements were recorded despite currency depreciation during the period, which resulted in increased foreign exchange losses of N93.9 billion.
BUA Cement’s return on average capital employed in 2024 increased to 15 per cent compared to 10 per cent in 2023.
Earnings per share increased to N2.18 in 2024 from N2.05 in 2023, representing a 6.3 per cent increase.
He added: “This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs. Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations. This was achieved by paying down import finance facilities and aligning accrued interest payments with available cash flows.”
He said with a dividend of N2.05 per share, representing a 94 per cent payout ratio, the company will continue to demonstrate a strong commitment to shareholder returns, and be consistent in distributing 90 per cent of its profits, adding, “This reflects both our confidence in the business and our sustained financial performance.”
On his part, the Managing Director and Chief Executive Officer of BUA Cement, Yusuf Binji, stated that the company delivered exceptional financial performance, resilience, strategic agility, and an unwavering commitment to growth in a dynamic economic environment.
He maintained that the performance reflects not just the strength of its operational execution but also the effectiveness of the company’s forward-looking strategies in navigating the complex market conditions.
He explained that during the year, the company encountered significant headwind, which arose from the devaluation of the Naira and its continued depreciation thereafter.
He revealed that the N92.1 billion loss to naira devaluation was primarily from loans obtained to fund the company’s expansion and growth.
“In managing the loss, we paid down on existing obligations and matched accrued interest with cash flows to eliminate further exchange losses. The positive outcomes from the measures taken are evident, contributing to our financial stability and reinforcing our ability to deliver sustained value,” he said.
Binji further noted that through enhanced distribution networks and customer-centric innovations, BUA Cement will not only strengthen its market position but also make a meaningful contribution to Nigeria’s infrastructure development agenda.
While reiterating the need for effective cost management and operational efficiency in maintaining a competitive advantage, Binji hinted that BUA Cement is building a 700 tons per day LNG regasification plant to support its energy needs and ensure a guaranteed supply.
As a way of sidestepping foreign loans, Binji disclosed that BUA Cement has renegotiated existing service contracts in favour of more local content, stating that the strategy is necessary to reduce exposure to foreign contracts and drive down operational costs amid the volatile foreign exchange environment.
He further noted that the path ahead demands both courage and discipline as the company navigates market challenges while seizing emerging opportunities.
He added: “The new production lines will serve as the foundation of our growth strategy, allowing us to meet the increasing demand for quality cement products across Nigeria and neighbouring countries.”
With enviable feats achieved in 2024, Binji declared that BUA Cement stands at the threshold of unprecedented opportunity, strategically positioned to address Nigeria’s persistent infrastructure deficit while delivering exceptional value to its shareholders.
He added: “Our journey forward is anchored on four interconnected priorities that will define our success: optimise our production capacity, continue prudent debt management, expand our market presence in underserved regions, and embrace digital transformation across our operations.”
