WATCH THE VIDEO HERE BUA Cement Plc has reported profit before tax of N99.630 billion for the financial year ended December 31, 2024, representing a 48.20% year-on-year (YoY) increase from 2023. According to the annual report and financial statements reviewed by Naijaonpoint, the company’s full-year revenue surged by 90.54% YoY to N876.470 billion, driven by strong domestic sales of its bagged cement category. While revenue growth was impressive, rising costs and financial expenses significantly impacted profitability. However, the increase in operating profit to N144 billion and operating profit margin despite heavy cost pressures indicates that BUA Cement’s core business remains strong. A 1.38% increase in operating margin is a positive sign but considering the magnitude of forex losses and cost escalation, the margin improvement appears modest. It suggests that while the company is managing costs effectively, profitability could have been much stronger if cost pressures were lower. The company should explore efficiency measures to contain costs, including better logistics, optimized procurement, and improved FX risk management. These efforts will help boost bottom-line growth. Key takeaways:
BUA Cement reports N99.630 billion pre-tax profit, up 48.20% in 2024
