2022 half year BUA Cement results show a 41% earnings growth to N61.36bn despite higher finance costs and FX losses, reflecting resilience and profitability.

2022 half year BUA Cement results have demonstrated resilience, with the company reporting a 41.40% surge in profit after tax to N61.36 billion, up from N43.39 billion in HY 2021.

Released to the investing public on July 25, 2022, the financial statement highlighted the company’s ability to sustain strong margins despite steep cost pressures.

The industrial goods giant recorded a profit before tax margin of 39.7% and a net profit margin of 32.5%. These gains came even as net finance costs rose sharply by 245% to –N2.85 billion compared to –N824.11 million in HY 2021.

According to the report, the rise in costs stemmed mainly from interest expenses, which jumped by 246% due to non-capitalisation of bond and loan interest on the Sokoto Line 4 project.

Exchange rate losses also swelled by 257% on account of the wide disparity between auction bid rates and I&E market rates.

This sharp increase in finance costs led to marginal dips in profit before tax and net margins by –0.68% and –6.8% respectively. However, analysts note that the company remains in a strong position, generating N0.325 profit from every N1 of sales — a powerful signal of efficiency in a challenging operating environment.

Importantly, BUA Cement’s net profit margin has held consistently above 53% on average over the past four years, underscoring the company’s resilience and long-term stability.