Tayo Busayo, Abuja –
BUA Cement’s H1 2022 results defied macroeconomic constraints caused by rising energy costs and currency devaluation. The cement maker reported notable growth in its profit and a -11.57% decline in gearing. BUA’s Capital structure showed reduced operational stress with a +31.52% rise in Equity.
The company’s cost of sales and energy expenses per ton rose by +20.67% and +34.8%, respectively, due to rising inflation and Naira depreciation. Revenue increased steeply due to pricing activities and increased production volume, aided by the additional capacity in the new Sokoto line 4.
Revenue appreciated by +51.73% from N124.28bn in H1 2021 to N188.56bn in H1 2022.
Cost of sale increased by +47.38% from N66.16bn in H1 2021 to N97.50bn in H1 2022. Operating profit grew by +53.86% to N77.74bn in H1 2022 compared to N50.52bn in Q1 2021.
Finance income appreciated by +256.02% from N402.01mn in H1 2021 to N1.43bn in H1 2022
Finance costs increased by +246.12% to N3.22bn in H1 2022
Profit before tax increased by +50.69% Y-o-Y to N74.89bn in H1 2021
Basic earnings per share rose by +41.4% from N0.128k to N0.181k in H1 2021.
The asset turnover ratio rose to 0.22X in H1 2022 from 0.19X in H1 2021
Total debt increased by +16.31% Y-o-Y to N82.25bn in H1 2022
Total Equity increased by +31.52% from N349.35bn in H1 2021 to N459.48bn in H1 2022.
Share Price Movement
Over the first four months of 2022, the share price displayed a lateral movement with smoothened volatility. On August 03, 2022, the moving average share price showed resistance at N74.25k and support at N61.0k between May 4, 2022, and June 21, 2022. On August 5, 2022, the year-to-date return on share price fell by -18.28%, from N71.95 to N58.80.
Source: BUA Cement, Proshare Research.