Despite recession, cement companies report over N570 billion in revenue so far in 2017

Must Read

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

Nigeria’s 3 major cement companies have made a total of N574.5 billion in revenues for the six months ended June 2017.  A N172.5 billion increase compared to the N402 billion made in the corresponding period in 2016.

  • Dangote cement had the lion share with revenues of N412 billion in 2017, a N120 billion increase from the N292 billion made in the  comparative period for 2016.
  • Lafarge Africa had revenues of N154 billion in June 2017, a N47 billion increase compared to N107 billion made in June 2016.
  • CCNN had the smallest share with revenues of N8.5 billion in June 2017, a N2.1 billion increase compared to N6.4 billion in June 2016. All 3 companies posted increases in revenue.

Factors that may have been responsible for the increase

Cement companies in the country increased prices in order to deal with rising energy costs. Epileptic  power supply, and gas shortages due to militant attacks have led to the companies relying on Low Pour Fuel Oil (LPFO) to operate.

President of the BUA group (an unlisted Cement maker), Abdulsamad Rabiu had recently hinted, that the cement producers were considering a reduction in prices due to an increase in foreign exchange availability and a drop in LPFO price.

Read Also:  No Stability, No Democracy Bumpy Road Ahead, Fasten Your Seat Belts – LBS Breakfast Session (Oct'18 Edition)

Dangote cement was the only company that revealed its production and sales volumes for the period in question. The company witnessed a drop in sales volume from 12970 tonnes in 2016 to 11509 tonnes in 2017, suggesting the increase in revenues may have been due to an increase in price.

- Advertisement -

Year to date, the shares of the three companies are all up, with CCNN and Lafarge Africa out performing the Nigerian Stock Exchange (NSE) All Share Index which is up 37175 year to date. CCNN shares closed at N9.22 last Friday up 84.4% year to date. Lafarge Africa shares closed up N60.75 up 48% year to date. Dangote Cement shares closed N235.51 up 35.56% year to date.

Read Also:  FMDQ Holdings Plc Holds Its 8th Annual General Meeting

 

 

 

- Advertisement -

 

(Nairametrics)

- Advertisement -
Despite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand SpurDespite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Despite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand SpurDespite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand Spur

Latest News

Proposed New Measures By The African Telecommunications Union And Ericsson Set To Expand Africa’s ICT Space

African Countries and telecommunications stakeholders have today launched the first set of ATU spectrum recommendations that focus on transforming...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Despite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand SpurDespite recession, cement companies report over N570 billion in revenue so far in 2017 - Brand Spur