BUA Cement, one of Nigeria’s largest cement producers, has declared a dividend of N2 per ordinary share to its shareholders during the company’s 8th Annual General Meeting (AGM) held on August 29, 2024. The announcement comes as the company continues to navigate financial challenges, including a sharp decline in pre-tax profit due to foreign exchange expenses, while reporting impressive revenue growth.
During the AGM, the company ratified several key resolutions and appointments, reinforcing its leadership and commitment to growth despite the tough economic environment. BUA Cement’s recently released second-quarter results for 2024 showed a remarkable 77% year-over-year revenue increase for the period ending June 30, 2024. However, the company faced a 54% year-over-year drop in pre-tax profit, primarily due to foreign exchange costs. Despite this, the Board approved the N2 dividend per ordinary share of 50 kobo for the fiscal year ending December 31, 2023, reflecting the company’s commitment to delivering value to its shareholders.
Key Resolutions Passed at the AGM:
Dividend Declaration: A dividend of ₦2.00 per ordinary share for the fiscal year ending December 31, 2023, was approved by shareholders.
Approval of Audited Financial Statements: Shareholders also endorsed the audited financial statements for the year ending December 31, 2023, as well as reports from the Board of Directors, auditors, and the audit committee.
Auditor Remuneration: The Board was authorized to determine the remuneration of the company’s auditors for the year ending December 31, 2024.
Managerial Remuneration: In compliance with Section 257 of the Companies and Allied Matters Act (CAMA) 2020, BUA Cement disclosed the remuneration packages for its managers, with ₦9.1 million set for non-executive directors, ₦10.4 million for independent non-executive directors, and ₦13 million for the chairman for the year ending December 31, 2024.
Related Party Transactions: A resolution was passed granting a general mandate for transactions with related parties or interested persons, in line with Rule 20.8(a) of the Nigerian Exchange Rules. The mandate covers all recurring transactions necessary for the company’s day-to-day operations.
Appointments and Re-Elections: The AGM also saw the appointment and re-election of key executives and directors, further strengthening BUA Cement’s governance structure:
Ms. Ganiat Adetutu Siyonbola was appointed as an independent non-executive director, while Mr. Chikezie Ajaero was named as an executive director.
Mr. Chimaobi Madukwe, Mr. Kabiru Rabiu, and Mr. Abdul Samad Rabiu, CFR were re-elected as directors, as part of the regular rotation.
Statutory Audit Committee: The committee for 2024 will consist of shareholder representatives, Mr. Ajibola Ajayi, Mr. Kabiru Tambari, and Mr. Oderinde Taiwo, alongside board representatives, Mr. Kabiru Rabiu and Ms. Ganiat Adetutu Siyonbola.
Chairman’s Remarks: Chairman Abdul Samad Rabiu, CFR, expressed his appreciation to shareholders for their continued trust and emphasized BUA Cement’s dedication to maintaining efficient operations despite facing foreign exchange pressures and broader economic challenges. He reaffirmed the company’s focus on creating long-term value for shareholders and contributing to Nigeria’s infrastructure development.
Outlook: Despite the profit decline caused by forex-related expenses, BUA Cement remains committed to innovation, operational efficiency, and sustainable growth. The company is optimistic about its ability to weather current economic headwinds and continues to focus on expanding its market share and delivering consistent returns to its investors.
About BUA Cement:
BUA Cement is a leading cement producer in Nigeria, committed to providing high-quality products and services across the country. With multiple production facilities and a focus on sustainability, the company plays a key role in Nigeria’s industrial sector.
