BUA Cement 2023 profit declines 31% to N69.45 billon due to FX losses

BUA Cement Plc reported a profit after tax of N69.45 billion for the financial year ended December 2023, representing a 31.2% decline year-on-year.

The year-on-year reduction in profits was largely due to a foreign exchange loss of N69.95 billion—an increase from N5.50 billion recorded in 2022.

Like most manufacturing companies in Nigeria, BUA Cement experienced profit declines as a result of the impact of the naira’s depreciation following the reunification of the exchange rate announced mid-last year.

Key highlights

  • Revenue N459.99 billion from N360.98 billion in 2022, +27.75% YoY
  • Gross profit N183.95 billion from N162.60 billion in 2022, +13% YoY
  • Operating profit N74.69 billion from N129.71 billion in 2022 
  • Profit after tax N69.45 billion from N101.01 billion in 2022, –31.2% YoY
  • EPS N2.05k per 50k share from N2.98k in 2022 
  • Dividend Announced N2 per share versus N2.8 per share
  • Outstanding Shares 33.8 billion shares

According to BUA, the foreign exchange loss capitalized relates to “the portion of the exchange losses arising from foreign currency borrowings eligible to be capitalized as part of the borrowing costs for capital projects” under construction.

  • BUA Cement’s foreign loan is estimated at $291.1 million and is a 9-year term loan granted by IFC and other lenders (African Finance Corporation, African Development Bank, and Deutsch Investitions-) on 27 April 2023.
  • There is a moratorium on principal repayments until 2025 and interest is payable semi-annually at a variable interest rate of 6-months term SOFR+5.5%. The facility will mature in December 2032.

Despite the profit drop, BUA Cement’s share price closed flat at N150 per share.

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