Business a.m.

BUA Cement chairman, Rabiu, gifts employees N2bn worth of his shares

● Firm still trending on profitabil­ity path for 2021

- Onome Amuge

As part of efforts to reward the hard work of employees, Abdul Samad Rabiu, the largest shareholde­r and chairman of Nigeria’s second-largest publicly listed manufactur­ing company, BUA Cement Plc, has announced a share bonus gift worth almost N2 billion, from his pool of shares, for employees of the company in recognitio­n of their effort to keep the company profitable despite the pandemic and prediction­s of a tough year, the company said in a statement made available to Business a.m.

In the statement, which emanated from the office of chairman, Abdul Samad Rabiu is quoted as saying that it was important to recognize the effort of key staff who worked tirelessly despite the 2020 pandemic to keep the company on a strong footing even as the company was better placed to stay profitable for the foreseeabl­e future.

“As we head into another year of record profits, this share bonus for our employees is only the right thing to do. By doing so, our core employees are better placed to benefit from BUA Cement’s future successes which they continue to help deliver,” Rabiu said.

Despite the pandemic and attendant economic slowdown, BUA Cement has remained one of the most profitable companies in Nigeria declaring a Profit After Tax of N72.3 billion, representi­ng 19.4 percent increase over the correspond­ing period in 2019. The cement manufactur­er also reported a 19.3 percent increase in revenues to N209.4 billion in 2020 from N175.5 billion, as of FY2019.

However, the growth in 2020 was broad-based and was driven by robust domestic market demand despite the challengin­g environmen­t and driven by the need to prioritise efficiency led by innovation, a continued focus on cost containmen­t measures and despite the devaluatio­n of the naira, which impacted pricing of some input costs, led to 14.8 percent year on year gross profit growth to N95.48 billion in 2020 from N82.44 billion reported in the previous year.

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