BUA Cement  had a sharp dip in profit in 9M 2024 due to higher finance costs. Except there is a sharp rise in Q4 2024 numbers, the company is unlikely to exceed FY 2023 performance.

About the firm 

BUA Cement Plc was incorporated as a limited liability company on 30 May 2014 and commenced business in August 2015. 

The firm was converted from a private limited liability company to a public limited liability company on 16 May 2019, as a prelude to its merger with Cement Company of Northern Nigeria (CCNN) Plc.

 It merged with CCNN on 23 December 2019 and was listed on the Nigerian Stock Exchange on 9 January 2020. The principal activities of the company are manufacturing and sale of cement. 

9M 2024 

There was decent topline growth but a sharp dip in profit after tax due to higher FX losses and net interest expenses.  

Revenue went up by 73.7% from N335 billion in 2023 to N583 billion in 2024

Profit after tax fell by 35.6%from N76 billion in 2023 to N48.9 billion in 2024. 

What of earnings? 

Earnings per share fell from N2.25 in 2023 to N1.45 in 2024. 

How’s 2024 likely to end ?

Q3 2024 earnings per share came in at 43 kobo.

Q4 2023 earnings per share was 60 kobo

Assuming Q4 2024 earnings per share is the same (most likely it will be higher), FY 2024 earnings per share should come in at N2.05.

That would mean the stock is currently trading at a TTM of 46.95 times earnings.

FY 2024 dividend forecast?

In FY 2023, it paid a dividend of N2 from from the N2.05 it made during the period, Essentially paying out nearly a 100% of its dividends.

If the same payout ratio is maintained, shareholders should except same dividend or less.