Dangote’s Competitor, BUA, Declares Profit After Slashing Cement Price
- Bua Cement's recent financial report showed that the company delivered N17 billion in the first quarter of 2024
- The cost of sales for the company was high during the reviewed period, exceeding that of the previous year by over two times
- Prices for 50kg bags of cement have dropped significantly from the range of N10,000 and N15,000 to between N7,000 and N8,000
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
BUA Cement has released its first quarter unaudited financial statement for 2024.
Source: UGC
According to the report, the company declared N17 billion in profit for three months, which ended on March 31. This shows a 33% decline from the N27 billion in the prior period.
This is despite an increase in revenue for the period. Analysis of the report done by Legit.ng showed that the revenue for the period improved massively by 107% to close at N161 billion from N106 billion in the same period of the previous year.
The cost of sales, however, jumped to N116 billion in the earlier months of the year compared to N56 billion in the prior year
Further analysis by Legit.ng showed that this was affected by an increase in the cost of materials, consumables, staff, and other expenses incurred by the firm.
Earlier, Abdul Samad Rabiu, the head of BUA Group, approved a 50% rise in staff compensation across his conglomerate, which was a significant step in prioritising employees' welfare.
This followed reports that the price of a 50kg bag of cement rose to about N9,500 in many parts of Lagos and around the country amid the biting effect of inflation in Nigeria.
The pay increase highlights BUA Group's all-encompassing employee well-being approach and applies to permanent and non-permanent staff.
In a recent report however, prices for 50kg bags of cement have dropped significantly from N10,000 and N15,000 to between N7,000 and N8,000 in Abuja, Lagos and other regions.
Legit.ng had reported that Dangote Cement Plc, a building materials company in the industrial goods sector, declared N817.4 billion in revenue for the first three months of 2024.
This represents a 101% increase compared to N406.7 billion in revenue in the same period in 2023.
States with lowest cement prices
Weeks after the federal government's meeting with major cement producers, Nigerians are still unhappy about the high cost of cement.
Legit.ng had reported that cement producers agreed to reduce prices to N7,000 to N8,000 per bag at the meeting.
Despite government intervention, checks show that most retailers in Lagos and Ogun States sell bags at N10,500 and N14,000.
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Source: Legit.ng
