Nigeria: BUA Cement posts N90 billion profit in 2021

BUA, one of the largest cement manufacturers in Nigeria, released its full-year financial statement on Tuesday showing N90.07 billion profit after tax which is N17 billion higher than the previous year.

The company’s financial statement shows an outstanding performance for the year with total revenue of N257 billion which is 23% higher than the previous year and a gross profit of N120 billion, 27% higher than the previous year.

The company’s cost of sales – money spent on the production of the cement sold by the company – increased by 20% from N113.9 billion to N136.4 billion.

The company’s profit margin which shows how the company is able to generate profit from its revenue stood at 50.1%, higher than the profit margin recorded in the previous year.

The company’s total shareholder equity increased by 6% from N375.9 billion to N398.0 billion while its total liabilities dropped by 15% from N390.3 billion to N330.3 billion and its total assets decreased by 5% from N766.3 billion to 728.5 billion.

The drop in the total asset can be traced to the company’s current assets specifically from trade and other receivables accounts which fell from N83 billion to N38 billion, the company’s financial statement revealed.

Cash and cash equivalents also fell from 123 billion to 62.3 billion; while the company’s total current liability items – short term borrowing – decreased from N105 billion to N39.8 billion.

The company’s earnings per share increased from N2.14 to N2.66 for the year.

The company’s net cash flow from operations increased from N64.2 billion to N154 billion, while the net cash flow used for investing dropped to N58.0 billion and the net cash flow generated from financing dropped drastically by 191% from N172.5 billion to -N157 billion.