Cement firm owned by Nigeria’s third-richest man posts $49.3 million profit in 2024

Key Points

• BUA Cement’s profit rose 6.4% to N73.91 billion ($49.3 million) in 2024, overcoming surging finance costs and operational expenses.
• The company’s revenue surged 90.3% to N876.5 billion ($584.6 million), driven by higher bagged cement sales in Nigeria, despite weaker demand abroad.
• BUA Cement proposed a N2.05 ($0.00136) per share dividend, up from N2 ($0.00133), reinforcing investor confidence amid economic uncertainties and rising costs.

BUA Cement Plc, a leading cement manufacturer led by Nigeria’s third-richest man Abdul Samad Rabiu, delivered a resilient financial performance in 2024, overcoming economic headwinds to post higher revenue and profit. The cement manufacturer recorded a 6.4 percent rise in profit despite surging finance costs and operational expenses.

Cement sales surge, lifting annual profit

According to its recently published annual report, net income increased to N73.91 billion ($49.3 million) in 2024 from N69.45 billion ($46.3 million) in the previous year. This growth came despite a sharp rise in finance costs, which soared to N60.04 billion ($40 million) from N19.94 billion ($13.3 million), as well as higher administrative expenses, foreign exchange losses, and distribution costs.

The company’s profitability was fueled by a strong top-line performance, with revenue surging 90.3 percent to N876.5 billion ($584.6 million) from N460 billion ($306.8 million) in 2023. This increase was primarily driven by higher sales of bagged cement in Nigeria, its core market. However, sales outside of Nigeria plunged from N3.92 billion ($2.61 million) to N631.64 million ($425,000), reflecting weaker demand outside Nigeria.

Market position and financial strength

BUA Cement, Nigeria’s second-largest cement producer, operates as a key subsidiary of BUA Group, the conglomerate founded by Abdul Samad Rabiu, the country’s third-richest man. The company has an annual production capacity of 11 million tonnes, reinforcing its dominant market position and strategic role in West Africa’s construction industry.

Under Rabiu, who holds a 95.78 percent stake in the company, BUA Cement’s retained earnings rose from N169.52 billion ($113 million) in 2023 to N175.7 billion ($117.2 million) in 2024. Its total assets also expanded from N1.215 trillion ($810.4 million) to N1.57 trillion ($1.04 billion), while total equity inched up from N385.22 billion ($256.9 million) to N388.55 billion ($259.2 million).

Dividend payout and shareholder value

BUA Cement’s Board of Directors has proposed a N2.05 ($0.00136) per share dividend for shareholders, a slight increase from last year’s N2 ($0.00133). The move underscores the company’s commitment to rewarding investors despite economic uncertainties.

Looking ahead to 2025, BUA Cement is focused on boosting revenue, navigating rising costs, and strengthening its position in Nigeria’s construction sector. Under Rabiu’s leadership, the company remains a major force in Africa’s industrial growth.