BUA Cement Targets New Markets to Boost Revenue

By Dipo Olowookere

Managing Director of BUA Cement Plc, Mr Yusuf Binji, has assured shareholders of the company that the board and management will continue to give reasons to smile.

Mr Binji gave this assurance while commenting on the performance of the cement manufacturer in the 2019 accounting year, where the firm delivered a fair top line amid a not-too encouraging bottom line as a result of the tax payment, which deflated the net profit to N60.6 billion from N64.1 billion and punctured the earnings per share (EPS) to N1.79 from N1.89.

In the view of the MD, the company managed to deliver on important strategic priorities despite the complexities and uncertainty that trailed the economic environment last year.

He listed the important strategic priorities as the commissioning of our 3mmtpa Line-2 at Obu Plant in March 2019, the merger completion between CCNN Plc and Obu Cement Company Limited and the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the Nigeria Stock Exchange (NSE), with the eventual delisting of CCNN Plc.

According to him, “Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins.”

delivered on important strategic priorities.”

Mr Binji said, “Going forward, our focus is to further harness the full benefits of the merger, while making further in-roads to new markets both locally and outside Nigeria.

“We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy.”

Business Post reports that last year, BUA Cement grew its revenue to N175.5 billion from N119.0 billion, buoyed by sales of bagged cements from Nigeria, which is the firm’s main market.

In the reporting year, the cement maker recorded an improvement from the sale of cements outside the country as sales from outside the country grew to N5.1 billion from N2.9 billion in the 2018 financial year.