Nigeria’s three top cement manufacturers have reported a combined N3.62 trillion in revenue in the first nine months of 2024 (January to September).
The amount represents a 69.4% increase from N2.13 trillion combined revenue reported by the companies in the same period of 2023.
The figures were analysed from the cement companies’ financial statements obtained from the NGX.
Price hikes primarily drive the surge in sales revenue.
TimesNow.com.ng earlier reported that the cost of a 50kg bag of cement was between N8,000 and N10,000, up from approximately N4,000 it was priced when the year started.
Here is a snapshot of the cement makers’ financial performance in the first half of 2024.
Dangote Cement leads the table as its revenue increased from N2.56 trillion in the first nine months of 2024. This is a 69.54% increase from the N1.51 trillion reported as of September 2023. Profit for the period after tax payment to the government is N279.096 billion.
The significant drop in profit is due to production costs, which accounted for N1.23 trillion.
BUA Cement reported a revenue increase to N583.40 billion for the first nine months of 2024, up from N335.86 billion in the same period of 2023.
However, the company’s cost of sales, which amounted to N402.59 billion, affected its final profit after tax, reducing it to N48.97 billion.
This represents a decline compared to the N76.06 billion profit recorded during the same period in 2023.
Lafarge’s revenue grew by 65.87%, reaching N479.49 billion in the first nine months of 2024, up from N289.08 billion in the same period of 2023.
After taxes, the company posted a profit of N60.07 billion, an improvement from N39.30 billion in 2023.
The company’s cost of sales amounted to N241.73 billion.
A financial analyst, Abdulrauf Bello, explained that cement manufacturers’ challenge is operating costs.
He noted:
TimesNow.com.ng earlier reported that the House of Representatives Joint Committee investigating the increase in cement prices in the country issued a directive to manufacturers, including Dangote Cement, BUA Cement, and Lafarge Africa.
Jonathan Gaza, the committee’s chairman, said that the manufacturers must provide a detailed breakdown of production costs to justify the recent increase in bag cement prices.
The lawmakers noted that although cement prices in the North and some other states are high, residents in some states still pay high cement manufacturers face
