BUA Cement Plc Records 41% Increase In Profit

BUA Cement Plc has released its Q2 financial statement for 2022, which revealed a profit before tax of N61.36 billion; a 41.40% increase compared to N43.396 billion in HY 2021, depicting profit before tax margin and net profit margin of 39.7% and 32.5% respectively from growth in income tax and net finance cost.

The company's net finance cost grew by 245% from -N824.11 million in HY 2021 to -N2.845 billion.

The surge is attributed to a growth in interest expenses and exchange rate loss. While interest expenses grew by 246% due to the non-capitalisation of bond and loan interest on Sokoto line 4, exchange rate loss grew by 257% on a wide margin between auction bid rates and I&E rates. 

 The growth in the net finance cost resulted in profit before tax and net margins in HY 2022 dipping by -0.68% and -6.8% respectively.

However, the net profit margin, over the past four years, has been consistent, positive and above all 53% on average.