BUA Cement Boss Restates Brand Strength; Firm Announces New Date For Dividends Payout

By The Source

The managing director of BUA Cement Plc Yusuf Bichi has disclosed that the exceptional performance of the company last year despite the COVID 19 headwind was as a result of the value and strength customers placed on the BUA Cement brand.

He explained that the company’s performance was due to the strategic choices made by the management, particularly the holistic implementation of the company’s Business Continuity Plan.

He stated that the firm, last year, entered strategic alliances for the supply of Liquefied Natural Gas (LNG) at its Kalambaina Plant, Sokoto State, and for the management of its mining operations.

According to him the performance “were deliberate and strategic choices other cost management efforts that expected to ensure that BUA Cement will continue to combine development and innovation into its offerings and activities to drive efficiency, reduce operating costs and maximize profits.”

Bichi said this on heels of the cement firm’s notification to the Nigerian Stock Exchange Limited, NGX to move the qualification date forward from July 9 to June 18.

BUA Cement Plc has revised the closure, qualification and payment dates for the dividend recommended for the year ended December 31, 2020.

The firm said in the notification that the closure date would now be between June 21 and 25, from July 12 and 16, 2021 initially proposed. The payment would be made on July 8 from July 23. 2021.

The company had recommended a dividend of 2.067 per share for the 2020 financial year following its impressive performance.

The second largest cement company in Nigeria, reported a revenue of N209 billion for the year ended December 31, 2020, indicating an increase of 19 per cent above N175.518 billion recorded in 2019. Cost of sales was impacted by the general rise in the cost of doing business to be at N114 billion, compared with N93.1 billion in 2019. Selling and distribution expenses equally pointed north, rising from N11.845 billion to N12.706 billion in 2020.

The result also indicate that administrative expenses reduced from N10.516 billion to N9.472 billion. Also, BUA Cement Plc’s excellent cost management led to a decline of 33 per cent in net financing cost to N3.438 billion in 2020, from N5.192 billion in 2019. As a result, profit before tax, PBT rose to N79.066 billion in 2020, up from N66.273 billion, while profit after tax, PAT rose from N60.61 billion to N70.518 billion in 2020