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Tag: BUA cement

  • BUA Cement, CMBI ink deal for $240m project

    BUA Cement, CMBI ink deal for $240m project

    BUA Cement Plc and Sokoto Portland Limestone Cement have signed an agreement with CBMI to build a new ultra-modern 3-million-ton-per-annum cement line in Sokoto.

    According to a statement by the companies, the deal marks a major milestone in their expansion drive and reflects  commitment to meeting Nigeria’s growing infrastructure needs.

    The $240 million project, including the new cement line, power plant, and other key facilities, will significantly increase BUA Cement’s production capacity, bringing its total annual capacity to 20 million tons when completed and strengthening regional supply.

    The agreement   builds on BUA Cement’s 15-year collaboration with CBMI, during which CBMI successfully delivered cement production lines totaling 14 million tons across BUA’s factories in Obu (Edo) and Sokoto.

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    The Sokoto plant, the statement added, is strategically located as the only cement plant in Nigeria’s North-West, providing easy access to several landlocked neighboring countries.

    It reads: “This location enables BUA Cement to serve both domestic and regional markets efficiently, ensuring high-quality Nigerian cement reaches new communities and critical infrastructure projects.

    “In parallel, the BUA 700-ton-per-day mini LNG plant in Kogi, scheduled for completion later this year, will supply clean, reliable energy to power the new Sokoto line as well as existing lines, improving efficiency, reducing emissions, and supporting sustainable industrial growth.

    :” This investment comes at a transformative time for Nigeria. The bold reforms introduced by Mr. President have made it easier to establish and operate factories while stimulating demand for infrastructure and construction projects.

    “These reforms create a favorable environment for industrial growth, and BUA Cement is proud to contribute to the nation’s development by expanding capacity, creating jobs, and supporting critical infrastructure.

    “With completion of the Sokoto line targeted in 20 months, BUA Cement is excited about the opportunities ahead and confident that this project will strengthen its position as a leader in the Nigerian cement industry and across the region.”

  • BUA Cement posts 90.5% revenue growth of N865.5b

    BUA Cement posts 90.5% revenue growth of N865.5b

    • Pays N2.05 dividend per share

    BUA Cement Plc yesterday said its revenue soared to N876.5 billion in 2024- representing a remarkable increase from N460 billion in 2023. This growth was complemented by strong profitability, with profit before tax rising by 48.2 per cent to N99.6 billion, compared to N67.2 billion it recorded in 2023 and profit after tax increasing by 6.3 per cent to N73.9 billion in 2024, as against N69.5 billion recorded in the previous year.

    These figures are contained in the financial report presented by the Board of the Company to its shareholders and public at its Annual General Meeting (AGM) held yesterday.

    According to a statement, within the period under review, BUA Cement commissioned two additional lines in Edo and Sokoto States, which increased its installed production capacity from 11MMTPA to 17MMTPA. In addition to this, the Company broke ground to commence the construction of a Greenfield 3 MMTPA production line Ososo, Edo State.

    BUA Cement further invested in its logistics operations with the purchase of additional trucks, while it also digitalised its payment and product order processes with the introduction of an online payment solution, which reduced customer waiting times, thereby improving customer experience.

    Read Also: BUA Cement blames high cement prices on middlemen

    Speaking on the occasion, its Managing Director / CEO, Yusuf Binji, said: “As we reflect on our achievements in 2024, BUA Cement stands at the threshold of unprecedented opportunity, strategically positioned to address Nigeria’s persistent infrastructure deficit while delivering exceptional value to our shareholders. Our journey forward is anchored on four interconnected priorities that will define our success: optimise our production capacity, continue prudent debt management, expand our market presence in underserved regions, and embrace digital transformation across our operations.”

    He said the company remained anchored to the Respect, Integrity, Commitment and Excellence (RICE) values. These principles, he noted, is mirrored in every bag of cement produced by the firm, even as it ensures that trust is not just a promise but a measurable outcome.

    Its Chairman, Abdul Samad Rabiu, in his address to the shareholders, said: “With a proposed dividend of N2.05 per share, representing a 94 per cent payout ratio, we continue to demonstrate our strong commitment to shareholder returns, consistently distributing over 90 per cent of our profits. This reflects both our confidence in the business and our sustained financial performance.”

    He also commended the shareholders of the company for their unwavering confidence, the Company’s employees for their dedication and hard work, and to its partners and customers for their continued trust and loyalty. He acknowledged that their support fuels the company’s ambition, inspiring it to continually strive for ex­cellence.

    One of the high points of the AGM was the unanimous reelection of three retiring directors. These include: Shehu Abubakar, Khairat Abdulrazaq-Gwadabe, both as Independent Non-Executive Directors and Finn Arnoldsen, as a Non-Executive Director.

  • BUA Cement projects price drop, posts strong 2024 results

    BUA Cement projects price drop, posts strong 2024 results

    Chairman of BUA Cement Plc, Abdul Samad Rabiu, has projected a significant decline in commodity prices, including cement, driven by improvements in the naira exchange rate and reduced production costs.

    Speaking at the company’s 9th Annual General Meeting (AGM) held in Abuja on Monday, Rabiu linked the ongoing price pressures to broader macroeconomic conditions, but expressed optimism about an improving outlook.

    “We are reaching an exchange rate of $1,500 to the dollar. I’m optimistic that going forward, we’ll see the naira possibly appreciate to N1,200 or even below. When that happens, prices will come down — not just for cement, but for other commodities too,” Rabiu told journalists after presenting the company’s 2024 annual report.

    Responding to questions about the current N10,000 per bag retail price of cement, Rabiu said the figure reflects production realities rather than profiteering. “It is the cost of production that has kept the price at around N10,000,” he stated. “We have invested billions of dollars in BUA Cement over 20 to 30 years. A return of N69 billion profit after tax — which translates to about $40 million — on such a large investment is not excessive.”

    He pointed out that energy remains the single largest cost driver for the company, prompting BUA Cement to invest in a mini liquefied natural gas (LNG) facility. The facility is expected to reduce energy costs across its plants and bolster operational efficiency. “There’s a lot of money going into gas,” Rabiu said. “We want to manage that cost internally to the extent possible.”

    The company delivered a good financial performance in 2024 despite macroeconomic headwinds, including further depreciation of the naira and rising input costs. Revenue rose by 90.5 percent to N876.5 billion, up from N460 billion in 2023. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased to N268.6 billion, a 43.8 percent rise from the previous year’s N186.8 billion.

    Profit before tax climbed by 48.2 percent to N99.63 billion in 2024, up from N67.2 billion in 2023. However, foreign exchange losses also increased, reaching N93.9 billion compared to N69.9 billion in the prior year.

    The company’s return on average capital employed (ROACE) improved to 15 percent, up from 10 percent in 2023. Earnings per share (EPS) also rose by 6.3 percent from N2.05 to N2.18.

    “This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as we absorbed rising input costs,” the Chairman stated.

    Strong cash generation enabled the company to finance its capital expenditure plans and reduce foreign currency exposure. BUA Cement paid down import finance facilities and restructured accrued interest payments in line with its available cash flows.

    A dividend of N2.05 per share has been proposed for shareholders, representing a payout ratio of 94 percent — continuing the company’s tradition of distributing over 90 per cent of annual profits.

    BUA Cement expanded its installed production capacity from 11 million to 17 million metric tonnes per annum in 2024 through the commissioning of new production lines in Edo and Sokoto States. This move has further strengthened the company’s position in Nigeria’s cement market.

    Construction has also commenced on a new greenfield plant in Ososo, Edo State, with an expected capacity of 3 million metric tonnes per annum. Upon completion by the first quarter of 2027, the company’s total installed capacity will rise to 20 million metric tonnes per annum.

    To support its expanded operations, the company made significant investments in logistics, acquiring new trucks and deploying a digital self-service solution to streamline payment and order fulfilment. This has shortened turnaround time and enhanced customer experience.

    In order to improve corporate governance, BUA Cement formally separated its Internal Audit and Internal Control functions in 2024. The restructuring has enabled more focused oversight of risk management, financial reporting accuracy, and operational integrity. Separate teams now manage both units to ensure independence and better checks and balances.

    Additionally, the company’s Board approved the appointment of a consultant to review and update the Succession Planning Policy. The aim is to ensure continuity in leadership, address key-person risks, and align the company’s succession framework with international best practices.

    On the risk management front, BUA Cement transitioned to a more comprehensive, enterprise-wide reporting structure. The Risk Management Committee, chaired by a Non-Executive Director, now oversees all risk-related matters, with reports regularly submitted to the Board along with mitigation strategies and defined responsibilities.

    Read Also: BUA Cement fetes top distributors

    “We are committed to maintaining transparency in all our engagements — with regulators, stakeholders, and shareholders,” Rabiu said. “Our AGM proceedings, investor calls, and disclosures on the Nigerian Exchange platform reflect our belief in open and inclusive dialogue.”

    Managing Director and Chief Executive Officer Yusuf Binji credited the company’s performance to a combination of strong leadership, a diverse workforce, and a research-driven operational culture.

    “Our ability to anticipate and meet customer demands is rooted in the varied perspectives across our team,” Binji said. “This is the cornerstone of our success.”

    He added that the company’s adherence to quality and environmental standards was validated by 100% recertification for ISO 9001 (Quality Management) and ISO 14001 (Environmental Management) in 2024.

    “These certifications demonstrate our commitment to sustainable business practices and raise the bar for excellence in the cement industry,” Binji said.

    Looking forward, BUA Cement plans to focus on four core strategic priorities: optimisation of production capacity, prudent debt management, market expansion into underserved regions, and the integration of digital technologies across operations.

    “BUA Cement is strategically positioned to tackle Nigeria’s infrastructure challenges,” Binji said. “Our journey ahead is about delivering exceptional value to shareholders and playing a critical role in national development.”

  • BUA Cement fetes top distributors

    BUA Cement fetes top distributors

    BUA Cement celebrated its top distributors in appreciation of their loyalty, trust and partnerships with the company.

     The award night, themed:  ‘Pillars of Strength, Celebrating Partnerships’ held at Eko Hotels in Lagos with distributors treated to several outstanding awards.

    In his speech, the Chairman of BUA Cement Plc, Abdul Samad Rabiu eulogized all the distributors who had grown with the company over the years. “This is not simply a gathering; it is a reminder that success at its core, is about people, trust, and the journey we undertake side by side.

    Since our earliest days, your steadfast support has been the foundation of our progress. You have worked with us through every challenge and innovation – you are co-builders of this legacy”.

    He further stated that the distributors’ loyalty and belief in the company’s mission continues to inspire the bold milestones made all the time. He noted that every service innovation by the company, from the Customer Call Centre to its improved logistics systems stemmed from one question – How could BUA Cement provide better service? Affirming, the company’s responsiveness, the Chairman said: “We listen, learn and most importantly we act because your success will always be our greatest metric and your confidence in us is the bedrock of our performance”.

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    The Managing Director/CEO of BUA Cement Plc, Yusuf Binji, during his address, lauded the distributors for their excellent performance in the year 2024.

    He stated that the distributors’ performance is a testament of their commitment and strong trust in the company’s products.

    “Tonight, are celebrating all our customers who have journeyed with us during the year 2024 and specially recognize those who have distinguished themselves and have performed outstandingly well in their dealings.

     The management is indeed grateful to our able Chairman, Alhaji Abdul Samad Rabiu (CFR, CON), for the wisdom to invest in Nigeria’s cement industry. We are equally grateful for the opportunity to meet with some of you face-to-face for the very first time and hope this gathering will foster a stronger and lasting relationship between us”.

    The award night featured appreciation and rewards to all distributors, and especially the top 20 in three categories – Diamond, Emerald and Sapphire. Eleven distributors out of the top 20 distributors were rewarded with brand new SUVs and cash prizes; seven others went home with one truck each with cash prizes while the top two distributors also got two brand new trucks each including cash prizes. A general cash-back of N30 for every bag of BUA Cement lifted in 2024 also applies to every distributor who purchased BUA Cement during the period.

  • BUA Cement blames high cement prices on middlemen

    BUA Cement blames high cement prices on middlemen

    BUA Cement Plc, has accused middlemen, or ‘dealers,’ of being the primary culprits behind the high cost of cement across the country.

    The Chairman of the Board of Directors, Abdul Samad Rabiu, stated this at the company’s 8th Annual General Meeting held in Abuja on Thursday

    He noted that despite the company’s efforts to ensure cement was sold at an affordable rate, these dealers have manipulated the market to their advantage.

    Rabiu stated that BUA Cement had set the price of a 50kg bag of cement at N3,500, a move aimed at making the product more accessible to consumers. However, this price reduction did not reach the end users as intended. “We sold cement to the dealers at a price that would allow them to sell at N3,500 per bag, but their desire for excessive profits led them to sell at N7,000 and above,” Rabiu remarked, pointing to the greed of these intermediaries as the root cause of the inflated prices seen in the market.

    Further corroborating the Chairman’s statement, BUA Cement’s Managing Director, Yusuf Binji, acknowledged the complexities involved in controlling retail prices due to the company’s business model.

    “Our model involves selling to distributors, who then sell to retailers before the cement reaches the end users. This multi-layered distribution chain makes it difficult for a private company like ours to enforce pricing,” Binji explained.

    He emphasized the need for government intervention in regulating the prices at which cement is sold to consumers. Despite the challenges, Binji noted that the company has seen relative price stability since the adjustments made in early 2024. He credited this stability to the industry’s response to government pleas and collaborative efforts with the Ministry of Trade and Industry.

    BUA Cement has not only focused on price moderation but also on increasing production capacity to meet growing demand. During the second quarter of 2024, the company commissioned two new production lines, adding six million metric tons per annum to its existing capacity. This expansion is expected to alleviate the pressure on supply, especially during peak construction seasons when demand typically exceeds supply, leading to price hikes.

     “We believe that with the moderation in the exchange rate and our increased capacity, the outlook for 2024 is very positive,” Binji asserted. He also hinted at potential price reductions if the Naira appreciates, which would allow the company to adjust prices in favor of consumers.

    In a bid to mitigate the risks associated with the transportation of Liquefied Natural Gas (LNG) over long distances, BUA Cement is investing in energy infrastructure to ensure self-sufficiency. The company is constructing a mini LNG plant in Ajaokuta, designed to supply its Sokoto plant and potentially other locations. This strategic move is expected to reduce the company’s reliance on external energy sources and ensure a steady supply of power to its operations.

    The new LNG plant, with a capacity of 700 tons per day, represents a significant investment running into hundreds of millions of dollars. This facility will enable BUA Cement to convert LNG into gas and distribute it efficiently across its production units, enhancing operational efficiency and reducing production costs.

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    Despite the challenging macroeconomic environment, BUA Cement recorded impressive financial results for the year 2023. The company reported a 27.4 percent increase in net revenue, rising to N460 billion from N361 billion in 2022. Capacity utilization also improved to 61.2 percent from 59.8 percent in the previous year, driven by higher cement volumes dispatched, which bolstered the company’s market share.

    However, the company faced setbacks in its profitability, with profit after tax declining by 31.2 percent to N70 billion from N101 billion in 2022. This decline was primarily due to foreign exchange losses stemming from the devaluation and continued depreciation of the Naira.

    In light of these results, Rabiu expressed confidence in the company’s future prospects, underpinned by its strong performance and strategic initiatives. The Board of Directors recommended a dividend of N2 per share for the year ended December 31, 2023, to be distributed to shareholders listed in the register of members as of August 9, 2024. This decision underscores the company’s commitment to delivering value to its shareholders despite the economic challenges faced during the year.

  • Consumers say BUA cement price crash a hoax

    Consumers say BUA cement price crash a hoax

    When the management of BUA Cement announced a reduction in the ex-factory price to N3,500, effective October 2, 2023, many old and prospective customers literally expressed hosanna for the bumper offer.

    However, two weeks after that announcement it is been one lamentation or the other.

    Shouts of “ironi, ironi, ironi!” [lies, lies,lies] was the response of Alhaja Islamiyyat Adegoke a cement dealer when our correspondent visited her office to enquire if the price of BUA cement has decreased as promised by the management of the cement company.

    It would be recalled that the chairperson of BUA Cement plc, Alhaji Abdulsamad Rabiu, had on September 15th vowed that he will reduce the price of his cement brand to about N3,000 by January 2024.

    Taking the reporter on a tour of her facility located at Ogba Ikeja which had on display Dangote and Lafarge cement, Alhaja Adegoke said that the question on whether the price of BUA cement had decreased does not even arise as the product was not even in the market.

    “How can such a big company be deceiving consumers by making such fake promises? How can they be seeking cheap publicity? When I heard the announcement, I did not take it serious unfortunately many customers have been trooping to this place and leaving dejected.

    “It is all politics”, said a top member of the Association of Blockmakers of Nigeria. The man who pleaded anonymity said that this is not the first time that BUA had betrayed its customers, “however, this shows total disregard to international corporate governance rules and standards.

    “His action shows a total disregard and disrespect for his customers who over the years from their loyalty and patronage of his cement have in no small measure contributed to his business success. Initially we believed the management of BUA as having sympathy for the populace but this current position is not only deceptive but also portrays the organisation as having a hidden agenda in order to smear competitors and gain an unfair market advantage over others in the industry,” he concluded.

    Many end users had expressed initial skepticism, saying this was not the first time the company had made such a promise but did not follow it through.

    Speaking with a major dealer at Oke-Gbegun Sawmill in Ikorodu area of Lagos state, Safiriyu Abideen, said he read about the price slash in the papers but nothing was communicated to him and his colleagues and that they were still selling at the old price.“BUA is still retailing for N5, 200/5, 300. I heard about the price slash but we were not told anything plus we bought at the old price. Am I supposed to sell at N3,500 because they said so on paper? People have been coming here to ask for BUA Cement but when I tell them the price, they start arguing that it is now N3,500, I simply ask them to check elsewhere.

    “No one can sell below N5, 200 and even at that price, it is a giveaway because the total cost price is N5,050.”

    He added that Dangote Cement still retails at N5,300 while Elephant Cement is still the ‘cheapest’ at N5,100.

    Another dealer at Pako building market in Isolo, Oyenike Adeyemi, said she also heard about the price slash but wondered how that was going to happen, as the product has never been available in the past and feared that this price slash would worsen the situation.

    She said even if the company reduces the ex-factory price to N3,500, dealers could still not sell at that price because logistics and transportation have both gone up.

    “Diesel is between N1,000 and N1,100 per litre in many areas; we will factor this into retail prices. Also, onloading and offloading costs have gone up, which will also be factored into the selling price. There are other costs,” she explained.

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    A visit to the building materials market in Oshodi saw the same results as all traders and distributors who visited all said they did not have BUA Cement.

    It will be recalled that in 2021 consumers and distributors were also angered by BUA after the management unveiled the new ex-factory price.

    Their anger was triggered off because it was reported that the company was planning to increase the price of cement. However in various statements issued between April and June that year [2021] the company refuted any claims of an increase in the ex-factory price stating that “the company had no plans to increase prices of its product now or in the near future.”

    After all the various statements, by July of that year, the company increased the price of the product by N200 per bag, pushing the value higher to N3,000 per bag from N2,800 per bag despite weeks of promise not to increase the price.

    All efforts to get a member of BUA’s management respond to questions from this reporter since the past one week failed.