The audited financial statements for the full year 2023 of BUA Cement reveal a notable increase in revenue, reaching N460 billion (equivalent to US$282 million), marking a significant growth of 27.4% compared to the N361 billion recorded in 2022.
Despite this revenue growth, the company faced challenges due to the devaluation of the naira in June and subsequent depreciation, alongside rising inflation. These factors contributed to a 39.5% increase in production costs, soaring to N276 billion from N197.9 billion in 2023.
Furthermore, BUA Cement reported a net foreign exchange loss of N70 billion, with N52.5 billion attributed to finance costs associated with the construction of additional 3 million metric tons per annum (Mta) lines at its Obu and Sokoto plants, along with other ancillary activities. An additional N17.5 billion was attributed to foreign trade payables.
Despite these challenges, the company achieved a net profit after tax of N69.5 billion.
Yusuf Binji, the Managing Director and CEO of BUA Cement, acknowledged the challenging operating environment in 2023, particularly with the devaluation of the naira. However, he highlighted strategic initiatives such as the BUA Cement Scratch and Win promo, which increased market share and drove revenue growth.
Looking ahead, Binji outlined plans for commissioning new 3Mta lines at Sokoto and Obu plants and activating a new 70MW gas power plant in Sokoto. Additionally, the company eagerly anticipates activating another 70MW gas power plant at Obu in the first quarter of 2024.
Furthermore, BUA Cement bolstered its distribution activities by acquiring over 500 trucks, reinforcing its market presence and distribution capabilities.
