Investors excited about BUA Cement Plc’s Q1 2022 result, as revenues rise and finance cost tumble -99.89%
BUA Cement Plc maintained its position as the second-largest cement company in Nigeria with a production volume of 11m metric tons achieved with the launch of its newly commissioned 3m metric tons per annum (line 4) in Sokoto in the first quarter of the year.
Following the recent investors and analyst conference call, the result presented showed an improvement in the company’s performance for the first quarter of 2022 despite energy supply and logistic pressures. The company’s revenue grew by +58.50% (Y-o-Y) from N61.19bn in Q1 2021 to N96.99billion in Q1 2022, also the profit before tax rose +70.97% (Y-o-Y) from N24.77billion in Q1 2021to N42.38billion in Q1 2022.
The cement maker noted that energy supply disruption had little or no effect on its production process with the use of its multi-filled energy combination of Liquid (Fuel), Solid (biomass), and gas (Liquified natural gas) as a backup but emphasized the pass-on effect of the energy cost to consumers through logistics. BUA projected a rise in cement price in Q2 2022 due to energy shocks.
With the newly commissioned line 4 Sokoto plant and ongoing construction of line 3 in Obu, Edo state, the firm intends to expand production capacity to meet higher domestic demand and increase export in the second quarter of the year (Q2 2022).
Key Highlights
Revenue appreciated by +58.50% (Y-o-Y) from N61.19bn in Q1 2021 to N96.99bn in Q1 2022
Cost of sale increased by +52.20% (Y-o-Y) from N32.06bn in Q1 2021 to N48.79bn in Q1 2022
Operating profit grew by +65.23% (Y-o-Y) to N42.38bn in Q1 2022 compared to N25.65bn in Q1 2021
Finance income rose from N2.03mn in Q1 2021 to N315.63bn in Q1 2022
Net finance costs fell by -99.89% (Y-o-Y) to N878.73bn in Q1 2021 to N30/32bn in Q1 2022
Profit before tax increased by +70.97% (Y-o-Y) to N24.77bn in Q1 2021 to N42.35bn
Basic earnings per share rose by +48.48% (Y-o-Y) to 98k in Q1 2022 from 66k in Q1 2021
The asset turnover ratio rose to 0.12X in Q1 2022 from 0.09X in Q1 2021
Total debt rose by +7.00% (Y-o-Y) to N168.28bn in Q1 2022 from N157.28bn in Q1 2021
Total equity glided up by +8.27% (Y-o-Y) from N398.32bn in Q1 2021 to N431.26bn in Q1 2022
The Company’s share price declined from N74.22 in May 2021 to its lowest in a year at N65.5 on 12 Oct 2021. Since the dip, the company’s share price has been on a steady rise, growing by +13.74%(Y-o-Y) from October 21, 2021, to Dec 21, 2021. BUA’s share price recently rose to N74.25 on May 10, 2022, after declining by -5.49% (Y-o-Y) between January and April 2022
