Rising prices in cement and increase in sales volume sustain growth Based on the recently released unaudited financials, the remarkable performance in BUACEMENT’s topline was sustained in the FY’21
The company was able to increase its revenue with a corresponding increase in Gross Earnings despite a similar rise in the Cost of Sales. The Revenue improved by 22.87% to N257.33 billion in FY’21, driven by the cement price and sales volume growth.
On the other hand, the Cost of Sales increased by 20.42% to 137.24 billion due to improved materials and energy costs. On the back of the higher increase in Revenue than the Cost of Sales, the Gross profit rose by 25.78% to close at N120.09 billion. Also, the Operating Expense closed on a positive note as it declined
by 18.16% to close at N 154.53 bn. Significant Other Income impacted the bottom line. The significant increases of 445.09% and 399.29% in sundry income and amortization of deferred income led to a substantial improvement of 283.47% in other income, rose from N0.38bn to N1.44bn in FY’21.
The Bottom-line mirrors topline growth On the back of the improvements in Revenue (22.87%), Other Income (283.47%), Operating Profit (27.74%) and the significant decline in Net Finance Cost (-82.26%), BUACEMENT scaled up their profitability in the period under review, with the PBT and PAT surging by 33.16% and 26.81% to N105.03bn from N91.74bn, respectively.
EPS Grow by 26.64% Following the impressive bottom-line performance (the PAT increase of 26.81%), the EPS advanced by 26.64% from ₦2.14 to ₦2.71