BUA Cement’s pre-tax profit drops by 54% in the second quarter of 2024
BUA Cement released its 2024 second-quarter results, revealing a pre-tax profit of N18.8 billion.
This represents a 54.00% year-over-year decline from a profit of N40.9 billion reported in 2023.
Revenue spiked by 76.80% year-over-year from N114.7 billion the previous year to N202.8 billion in Q2 of 2024.
However, BUA Cement’s earnings per share fell by 55.96% year-over-year when compared to the previous year.
Key highlights:
Revenue: N202.8 billion, 76.80% YoY
Cost of sales: N138.4 billion, 134.83% YoY
Gross profit: N64.3 billion, 15.42% YoY
Administrative expenses: N6.6 billion, 388.46% YoY
Pre-tax profit: N18.8 billion, -54.00% YoY
EPS: N0.48,55.96% YoY
Commentary:
The company’s revenue rose by 76.80% year-over-year, from N114.7 billion in 2023 to N202.8 billion in 2024.
This increase in revenue caused a spike in the cost of sales by 134.83% year-over-year at N138.4 billion in the second quarter of 2024.
From the release, the company recorded an increase in gross profit by 15.42% year-over-year.
However, an increase in administrative expenses by 388.46% YoY, from N1.3 billion the previous year to N6.6 billion in Q2 of 2024, exerted pressure on the pre-tax profit.
The pre-tax profit of the company declined by 54.00% YoY from N40.9 billion in Q2 of 2023 to N18.8 billion in Q2 of 2024.
BUA Cement’s Managing Director/Chief Executive Officer, Mr. Yusuf Binji, in a statement issued in July 2024, blamed the pre-tax decline on Nigeria’s constraining business environment.
He went further to state that operational costs due to the devaluation of the naira and inflation fueled the pre-tax decline.
The company’s earnings per share crashed by 55.96% YoY from N1.09 in Q2 of 2023 to N0.48 in 2024.
BUA Cement is currently trading at N143.20 per share in the Nigerian stock market.
