Nigeria‘s second-richest man, Abdul Samad Rabiu, has once again demonstrated its financial prowess by achieving record-breaking profits at the end of its 2022 fiscal year.
Despite intense competition, the company reported a 12.14-percent increase in profit from N90.08 billion ($195.6 million) in 2021 to an all-time high of N101.01 billion ($219.4 million) in 2022, according to its recently released financial statements.
These impressive figures serve as a testament to BUA Cement’s unwavering financial strength and its ability to optimize profitability in a highly competitive market, cementing its position as a top-performing company in the industry.
The group’s remarkable earnings surge can be attributed to a 40.28-percent increase in revenue during the period under review, which rose from N257.3 billion ($558.8 million) to N360.9 billion ($783.8 million). This was due to a combination of pricing benefits and increased sales volume, driven by rising demand and highly efficient operations at its state-of-the-art facilities.
While the surge in revenue would have resulted in even higher profits for the group, the increase was offset by higher direct costs, as well as a rise in selling and distribution costs, including administrative expenses, which exceeded N17.2 billion ($37.3 million) during the period under review.
Nevertheless, the group’s overall performance remains strong and highlights its ability to deliver impressive financial results even in challenging market conditions.
BUA Cement’s exceptional financial performance during the period under review has led to a substantial increase in its assets from N728.5 billion ($1.58 billion) to N874 billion ($1.89 billion), as well as a rise in retained earnings from N181.9 billion ($395 million) to N194 billion ($421.3 million).
These impressive figures reflect the company’s continued success in maximizing profitability and maintaining financial stability. In recognition of its outstanding performance, the Board of Directors approved an increased dividend payout of N2.8 ($0.00608) per share to shareholders, compared to the N2.6 ($0.0056) paid out in the previous year.