BUA Cement grew profit before tax by 26.52% year on year reaching N40.963 billion according to the information contained in its Q2 2023 results for the period ended June 2023
Furthermore, the cement company’s profit after tax was up 30.45% YoY to N36.815 billion during the same period. As a result, the earnings per share for Q2 amounted to N1.09, representing 31.33% year-on-year growth.
- Revenue; N114.7 billion; +25% YoY
- Cost of sales up 21% YoY to N58.96 billion
- Gross Profit; N55.748 billion +30.07%
- Administrative expenses are down -49.57% YoY to N1.36 billion
- Selling and Distribution expenses are up 40.52% YoY to N6.769 billion
- Operating income; N48.55 billion; +37.33%
- Net finance cost up 179.48% YoY to N7.869 billion
- Profit for the year; N36.815 billion; +30.45% YoY
- Cash and short-term deposits are up 352% to 217.349 billion
- Total Assets up 18.74% to N1.037 trillion
- Long-term borrowing up 341% to N197.346 billion
- Short-term borrowing is down -57.38% to N34.392 billion
BUA Cement’s positive revenue growth, improved gross profit, and reduction in administrative expenses have positively impacted its profitability.
However, the sharp increase in net finance costs, especially driven by higher net interest expenses and net losses on exchange, is indeed a significant area of concern for BUA Cement.