Nigerian Billionaire Abdul Samad Rabiu’s BUA Cement Records $168.4M Profit in 9 Months 2022

Abdul Samad Rabiu, a Nigerian billionaire who owns BUA Cement Plc, is on course to receive yet another sizable payout in 2023 after the company’s first nine months of fiscal year 2022 ended with a profit of $168.4 million.

As cement sales grew by double digits, the major cement manufacturer’s profit numbers increased by 12.3% over the first nine months of the 2022 fiscal year, rising from N65.9 billion ($145 million) to N74 billion ($168.4 million).

Due to recent investments in capacity, the group has been able to maintain a double-digit growth in earnings and revenue despite difficulties in its operating environment, particularly the increase in energy prices. 

This action confirms the group’s commitment to developing its production infrastructure into a market leader in Africa’s cement industry.

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Increase in revenue 

Its revenue increased by 40.5 percent, from N186.9 billion ($425.1 million) to N262.6 billion ($597.4 million), as a result of stronger demand and optimal operations made possible by its cutting-edge facilities, which guarantee effective energy use in the cement production process.

Assets rose significantly from N728.5 billion ($1.66 billion) to N781.6 billion ($1.78 billion) as a result of the group’s strong financial performance, while retained earnings decreased as a result of the group’s dividend payout this year from N181.9 billion ($413.6 million) to N167.9 billion ($382 million).

Opening a new plant in Sokoto 

In order to accommodate the nation’s rising need for cement as well as regional exports to other nations, the main cement producer expanded during the review period and established a 3-million-metric-tonne cement facility in Sokoto, a state in northwest Nigeria.

The commissioning of the new facility is in line with BUA Cement’s medium-term aim to boost production capacity as it seeks to maintain its leadership position over Lafarge Africa Plc, a division of the Swiss multinational corporation LafargeHolcim.

The cement manufacturer is planning to apply for a loan from the International Finance Corporation to expand the Kalambaina cement plant in Sokoto State, to raise the plant’s nameplate capacity from 2 million tonnes per year to 8 million tonnes per year and creating ancillary utilities as part of its efforts to increase earnings and valuation.

One of the richest billionaires in Africa, Abdul Samad Rabiu makes the most of his money through his 92 percent ownership in BUA Cement.

He indirectly owns the majority of the cement producer through his industrial company, BUA Group.

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