BUA Cement Releases Earnings Forecast For Q2, 2022

Bua Cement Plc released its earnings forecast for its Q2, 2022 financial period. In its forecast statement released via the Nigerian Stock Exchange website (ngxgroup.com), the company made the following remarks.

 Key Insight

• The cement giant, whose flag ship brand is the "Elephant", expects sales revenue to hit NGN109.79 billion, while the cost of sales should be moderated well enough to hit NGN52.985 billion.

• The company also predicts that gross profit should hit the NGN56.81 billion mark.

• Selling and distribution costs, administrative expenses, and finance costs should all be well moderated at NGN3.9 billion, NGN2.213 billion, and NGN26.85 million, respectively.

• The company's forecast that Profit Before Taxation (PBT) should hit an estimated NGN50.7 billion, with income tax oscillating around 613 billion.

• Finally, after the above consideration, the company forecasts that Profit After Taxation (PAT) should hit NGN42.053 billion at the end of Q2 2022.

Drawdowns

• The company arrived at this forecast based on the FY 2021 financial statement where its revenue grew by 18.61% from NGN209.443 billion on December 31, 2020 to NGN257.332 billion on December 31, 2021. The company believes that the challenges faced and, in some cases, triumphed over will pose fewer challenges this quarter.

• The company believes that macroeconomic challenges such as high inflation, foreign currency shortages, and other factors will continue to be a threat to meeting the higher sales revenue target, but that a more flexible approach to adjusting to these and other risk factors will be taken into account.

• We understand that the company has reorganized and will continue to reorganize its operations in such a way that manages operational costs.
• The likely drawdown from this forecast is that stock market analysts, investors, and financial analysts will be looking forward to the release of its audited or unaudited FY Q2 2022 when the time is right.
• The likely effect is that if the actual is less than the earnings forecast, the share price will likely fall. If the actual earnings are greater than or equal to the forecast, the share price will either remain the same or get higher, or bullish.

• As of today, the share price of Bua Cement Plc on the Nigerian stock exchange is N70.75K.

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