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Shareholders of BUA Cement group should be popping champagne and high-fiving one another right now, but they will be sipping their drink with a bit of disappointment as the company's Profit After Tax dented the impressive financial performance of the company last year.
BUA Cement Plc recorded an impressive result for full-year 2019, with Revenue and Gross Profit hitting the roof. However, Profit After Tax took a downward path, the company's Annual report and financial statements for the year ended December 31, 2019, which was seen by AllNews, showed.
The result disclosed that BUA Cement Plc generated N175.5 billion in revenue in 2019, representing a substantial growth when compared to the corresponding period of 2018 when BUA Cement Plc generated N119 billion in revenue. Aside from the revenue growth, the company also reported growth in its gross profit.
According to the statement, gross profit nearly doubled as BUA Cement Plc generated N82.4 billion for the year 2019, surpassing the N59 billion generated as gross profit in the corresponding period of 2018. The increase in gross profit had occurred despite the significant rise in the cost of sales.
BUA Cement Plc's cost of sales had increased to N93 billion last year, rising beyond the N59 billion it recorded as cost of sales for production of its goods and their distribution, the statement released on the Nigerian Stock Exchange (NSE) revealed.
Meanwhile, profit before tax jumped from N39.1 billion recorded in 2018 full year, to N66.2 billion last year. The result would have thrown shareholders into wild jubilation had the profit after tax not dropped. In 2018, BUA Cement Plc recorded N64 billion profit after tax, however, BUA Cement Plc couldn't surpass the amount in full-year 2019, as the company generated N60 billion in profit after tax deduction.
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