The management of BUA Cement Plc said it recorded revenue growth of 27.4 per cent in 2023.

The company also announced an increase in net revenue of N460 billion during the period, up from N361 billion in 2022.

AbdulSamad Rabiu, chairman of BUA’s board of directors, announced this on Thursday in Abuja at its eighth AGM.

According to Mr Rabiu, the company also improved its capacity utilisation to 61.2 per cent in 2023 from 59.8 per cent in 2022 due to an increase in cement volumes dispatched.

He said the increase in volumes dispatched also increased market share. He, however, said profit after tax declined by 31.2 per cent due to foreign exchange losses.

“Furthermore, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose to N169 billion from N155 billion recorded in the prior year. However, profit after tax declined by 31.2 per cent to N70 billion from N101 billion recorded in the corresponding period in 2022.

“This was impacted by foreign exchange losses, which arose from the devaluation and the continued depreciation of the naira,” he said.

The board chairman said the company is committed to shareholder value despite the reduction in its bottom line. He announced a dividend of N2 per share for the year ended December 31, 2023, to be distributed to shareholders.

Mr Rabiu said the operating environment during the period was challenging, as global growth declined to 3.2 per cent in 2023 from 3.5 per cent in 2022.

“Conversely, global inflation peaked at 6.8 per cent in 2023. Across Sub-Saharan Africa, economic growth declined to 3.3 per cent relative to the 4.0 per cent recorded in 2022, driven majorly by global slowdown, weather shocks and supply-side issues,” he said.

He said the company would continue to implement and pursue its strategic goals of expansion and increasing market share. He said it would also explore solutions that will enable it to sustain value creation for its shareholders and other stakeholders.

BUA’s managing director, Yusuf Binji, said the major challenges faced during the year arose from the Central Bank of Nigeria’s currency redesign policy.

Mr Binji said the 2023 general elections and foreign exchange volatilities also created major challenges.

“Like every manufacturing business, some of our inputs are dollar-denominated, and with the devaluation and continued depreciation of the naira, we recorded rising energy and other raw materials costs. Also, the depreciation of the naira led to the revaluation of existing liabilities on the balance sheet, which resulted in an exchange loss of N70 billion,” he said.

According to him, the company could still manage its negative shock, declare a profit and, most importantly, preserve shareholders’ funds. 

(NAN)