BUA Cement achieves net revenue of NGN188.6bn in 1H22

BUA Cement reported net revenue in the 1H22 up 51.7 per cent to NGN188.6bn from NGN124.3bn (US$452m), compared to the corresponding period ended June 2021. This included added volumes for the new line 4 at Sokoto.

EBITDA increased by 49.7 per cent to NGN87.5bn from NGN58.4bn comprard to the 1H21. EBITDA margin fell marginally by 0.6 percentage points to 46.4 per cent from 47 per cent, in June 2021. Profit after tax rose 41.4 per cent to NGN61.4bn from NGN43.4bn, in the 1H21. Cement volumes reached 3.34Mt in the 2H22, 31,000t of which were exported.

Ex-factory prices were raised in April and June 2022 and rose to NGN3200/50kg bag.

Revenue per tonne increased by 24.2 per cent to NGN56,454/t from N4GN5,467/t, in the 1H21. This was due to pricing activities during the review period, said the company. Cost of sales rose by 47.4 per cent or NGN31.3bn to NGN97.5bn from NGN66.2bn in the 1H21, primarily from increases in energy and raw materials costs. Selling, distribution and administration cost per tonne increased by 44.3 per cent to NGN4048/t from NGN2806/t, in June 2021. Energy cost per tonne increased by 34.8 per cent to NGN13,048/t from NGN9683/t during the corresponding period.

Finn Arnoldsen, BUA director, said that the northeast and southwest of the country have seen increases in cement demand. The 1H22 has seen cement volumes in the country rise by around seven per cent compared to 1H21, he added. Mr Arnoldsen estimated that "compared to 28Mt of cement produced in 2021, the country is expected to raise cement output to 31-31Mt in 2022."

Future expansion plans for the company include the construction of kiln line 3 at Obu (3Mta) and line 5 at Kalambaina, Sokoto (3Mta), both of which are scheduled to be commissioned in 2023. The company currently has a cement capacity of 11Mta in Nigeria.