BUA Cement Plc, one of Nigeria’s leading cement manufacturers, has reported a remarkable increase in its financial performance, with revenue soaring by 90.5 per cent to N876.5 billion for the fiscal year 2024. The leap from N460 billion in 2023 reflects a period of aggressive expansion and strategic investment for the company, which also announced a dividend payout of N2.05 per share to its shareholders.
The strong top-line growth was complemented by solid profitability metrics. Profit before tax (PBT) rose by 48.2 per cent to N99.6 billion, up from N67.2 billion in the prior year. Profit after tax (PAT) also saw a healthy increase of 6.3 per cent to N73.9 billion, compared to N69.5 billion in 2023.
A key driver of the impressive performance has been BUA Cement’s aggressive capacity expansion. Within the period under review, the company commissioned two additional production lines in Edo and Sokoto States, boosting its installed capacity from 11 million metric tonnes per annum (MMTPA) to 17 MMTPA.
Further solidifying its growth trajectory, the company also broke ground for a new greenfield 3 MMTPA production line in Ososo, Edo State. Beyond production, BUA Cement has invested significantly in enhancing its logistics operations through the purchase of additional trucks and has embraced digital transformation with the introduction of an online payment solution. This digital initiative has notably reduced customer waiting times, thereby improving overall customer experience and operational efficiency.
Yusuf Binji, managing director/CEO of BUA Cement, outlined the company’s forward-looking strategy. “As we reflect on our achievements in 2024, BUA Cement stands at the threshold of unprecedented opportunity, strategically positioned to address Nigeria’s persistent infrastructure deficit while delivering exceptional value to our shareholders,” he stated. Binji identified four interconnected priorities including; optimising production capacity, prudent debt management, expanding market presence in underserved regions, and embracing digital transformation across all operations. He further emphasised that the company remains anchored to its core “RICE” values: Respect, Integrity, Commitment, and Excellence.
Abdul Samad Rabiu , the chairman of BUA Cement, addressed shareholders, highlighting the company’s commitment to shareholder returns. “With a proposed dividend of N2.05 per share, representing a 94% payout ratio, we continue to demonstrate our strong commitment to shareholder returns, consistently distributing over 90% of our profits,” Rabiu remarked. He attributed this consistent performance to the company’s robust business model and sustained financial health. Rabiu also extended gratitude to the shareholders for their unwavering confidence, employees for their dedication, and partners and customers for their continued trust, acknowledging their support as the fuel for the company’s ambition.
A notable moment at the AGM was the unanimous re-election of three retiring directors: Shehu Abubakar (Independent Non-Executive Director), Finn Arnoldsen (Non-Executive Director), and Khairat Abdulrazaq-Gwadabe (Independent Non-Executive Director), ensuring continuity in the company’s governance.
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