BUA Cement is one of the 3 cement companies on the NGX. It is also one of the 3 cement companies in Nigeria.

It was founded Abdulsamad Rabiu.

FY 2024 numbers

There was a decent increase in revenue. Full year revenue came in at N876 billion. Up 47.5% from the N459 billion in 2023

At this pace, very likely this company will join the N1 trillion club in FY 2025. The N1 trillion club is a select group of companies that generate N1 trillion or more in annual revenue.

Members of that club include MTN Nigeria, Dangote Cement to name a few.

There was a sharp drop in export revenue. Its a small portion of revenue overall, but everything matters.

Export revenue in 2023 was N3.9 billion
Export revenue in 2024 was N631 million.

Im sure there will be an answer during the earnings call. Id update the post on the website when that happens.

Profit after tax grew marginally by 6%. From N69.4 billion in 2023 to N73.9 billion in 2024.

So why did the profit grow at a slower pace?

There were higher finance costs (more specifically FX losses due to the devaluation of the Naira. A similar trend with Dangote cement.

Costs went up sharply

There was a sharp drop in raw material costs energy cost and Operation and maintenance service charges.

Energy consumption came in at N282 billion. Up 129% yoy from N123 billion in 2023.

Operation and maintenance service charges came in at N215 billion. Up 146% from N87.4 billion 2023

Both of them rose by over 100%. Thats huge

I like to look at staff costs as well. Salaries were up by 89% year on year from N9.1 billion in 2023 to N17.2 billion in 2024. Yoy means you are comparing two consecutive years.

.Salary hike isnt suprising given the high inflation we have seen in the last few years.

Valuation’s a bit too rich

Earnings per share came in at N2.15
The stock is trading at N93.

That means it trading at a price to earnings ratio 43.2 times earnings. In simple terms, it means that investors are paying 43 times more than what the company earned last year.

That’s way higher than the average price to earnings ratio on the NGX.

Is it worth it?

You need to look at the pace of revenue and earnings growth. You can look at the average over the last 3 years.

Revenue has grown at a CAGR (compound average growth rate) of 43% in the last 5 years.

What of earnings per share? That’s grown at an average of 0.46% in the last 5 years.

So would you pay N43 for a company that is growing earnings at less than 1% every year

Lastly, what’s in it for shareholders?

The Board of Directors have recommended a N2.05 dividend. Previous year it paid N2, so dividend is up by just 5 kobo.

Should you have any questions, please send an email to info@greentickertales.com

You can find me on:

My twitter handle is @quansimodo
Instagram handle is @greentickerwarrior