BUA Cement's revenue increased by 40% in 2022

BUA Cement Plc of Nigeria reported that revenue increased by 40.3 per cent or NGN103.7bn (US$225.3m) in 2022 to NGN361bn from NGN257.3bn in 2021, given the combination of pricing activities and increased volume dispatched (including added volumes from the new Line 4 in Sokoto). Cement volumes in 2022 totalled 6.27Mt. 

The company's revenue per tonne increased by 21.2 per cent to NGN57,511/t in 2022 from NGN47,448/t, as at 2021. "This was due to pricing activities during the year," said Yusuf Haliru Binji, BUA managing director and CEO.

EBITDA rose by 29.2 per cent to NGN154.5bn in 2022 (2021: NGN119.6bn), resulting from higher reported net revenues, which increased by 40.3 per cent to NGN361bn from NGN257.3bn in 2021. This was partly offset by an increase in energy products costs, operation and maintenance service charges, distribution costs arising from increased fleet size and fuel costs, foreign exchange losses, depreciation charges, etc. 

EBITDA margin for the year was down by 3.7 percentage points to 42.8 per cent (2021: 46.5 per cent). This was due to a faster rise in costs. 

Cost of sales rose by 45.1 per cent or NGN61.6bn to NGN197.9bn from NGN136.4bn (2021), primarily from increases in energy costs, operations and maintenance charges, depreciation charges and raw materials costs. 

Selling, distribution and administrative costs (net) increased by NGN7.2bn to NGN8.5bn. Factors attributable for the increase were: foreign exchange losses from adverse exchange rate movement; distribution costs, resulting from the acquisition of additional trucks and higher fuel costs; depreciation charges and donation and public relation investments. 

Cost of sales per tonne rose by 25.4 per cent to NGN31,535/t from NGN25,149/t, as at 2021. This was due to increases in energy product cost, operations and maintenance service charges, depreciation charges and raw materials costs.

Energy cost per tonne increased by 36.6 per cent to NGN14,527/t from NGN9441/t during the corresponding period ended 2021, which resulted from a combination of adverse movement in exchange rate, change in market prices and increased operational activity.