Rating Release

Agusto & Co. hereby affirms the “A+“ rating assigned to BUA Cement PLC

The rating expires on 30 July 2024.

Agusto & Co. hereby affirms the “A+“ rating assigned to BUA Cement PLC (“BUA Cement” or “BCP”, or “BUA”, or “the Company”). The rating reflects the Company’s good profitability, strong cash flow position buttressed by continued earnings growth and favourable trade terms with customers and suppliers as well as its low leverage metrics. The assigned rating also considers BUA Cement PLC’s leading position in the Nigerian Cement Industry, ongoing capacity expansion initiatives on the back of strong local demand for cement and a stable, qualified and experienced management team. Nonetheless, the rating is moderated by the Company’s concentrated ownership structure, inadequate working capital position and rising operating costs occasioned by the heightened inflationary environment and Naira depreciation.

BUA Cement PLC, one of the leading players in the Nigerian Cement Industry was established in 2019 following the merger between Cement Company of Northern Nigeria (CCNN) and Obu Cement PLC. The Company operates two production plants in Sokoto and Edo States with a combined installed capacity of 11 million metric tonnes (MMT) per annum as at 31 December 2022. BUA Cement PLC is well-positioned to benefit from the sustained growth in the Nigerian Cement Industry in the near to medium term supported by a combination of plant expansion strategies, efficient route-to-market initiatives and energy-efficient solutions.

The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.