An increase in demand amidst rising prices spurred topline growth.
From the recently released Q1`22 unaudited financials, BUACEMENT’s recorded an impressive topline performance. Revenue advanced significantly by 58.50% to N96.99 billion on the back of increased price and volume of cement, which is their main line of business. On the other hand, the Cost of Sales increased by 52.20% to 48.79 billion, driven by a surge in energy and material costs (+70.54% and +66.08%). On the back of higher increase in Revenue than the Cost of Sales, Gross profit rose by 65.43% to close at N48.20 billion.
Significant other Income, boosts bottom-line performance.
The significant increase in sundry income and insurance claims (+39.94% and +2026.21%) led to a 715.40% substantial improvement in other income, rising from N22.81mn in Q1`21 to N186.00mn in Q1’22. On the flip side, a 71.08% rise in operating expense attributed to a 260.14% increase in distribution costs pressured operating profit. Notwithstanding, operating profit surged by 65.23% to print at N42.38billion
Tax Expense pressures PAT.
On the back of the improvements in Revenue (58.50%), Other Income (715.40%), Operating Profit (65.23%), and the significant decline in Net Finance Cost (-96.55%), BUACEMENT scaled up its profitability in the period under review, with PBT surging by 70.97% to N42.35bn. However, a 283.06% jump in tax expense suppressed PAT. Nonetheless, PAT inched higher by 48.18% to close at N33.14bliion in Q1`22.
EPS Grow by 48.48%
Investors’ value increased as EPS grew by 48.48% from N0.66 to N0.98 in Q2`22, mirroring an overall impressive performance in Q1`22 bottom-line performance (PAT increase of 48.18%).