BUA Cement, di second-biggest cement maker for Nigeria, don report say dia post-tax profit fall sharply for di first half of di year, drop by almost half of wetin dem make last year. Dis one show say di big increase for cement price during di period no dey translate to strong earnings for Nigerian cement makers, amid record inflationary pressures.
Di company report say dem make N34.3 billion for net profit, wey drop from N63.6 billion, even though dia topline increase by nearly 65 per cent. Dia fiercest competitor, Dangote Cement, report say dem get small increase for profit, despite record revenue wey come from cement price boom instead of increase for sales volume.
Di main problem wey BUA Cement face na energy cost, wey increase by 171.7 per cent, and account for more than half of cost of sales. Di company dey plan to increase dia capacity to 20 million tons per annum, with new plant for Sokoto under proposal.
Di stock price of BUA Cement no change since March 21, stick for N143.20 per unit, and don return 47.6 per cent since di start of di year. Di company get market valuation of over N4.8 trillion, while dia total assets stand for N1.4 trillion. Billionaire tycoon Abdul Samad Rabiu get 97.7 per cent interest for di company.
Source: Prime 9ja Online Pidgin: BUA Cement Profit Fall Sharply for First Half of di Year