2017 was a profitable year for Nigeria’s cement giants as they made ₦1.1 trillion in revenue for the 12 months ended December 2017. This represents a 32.4% increase over the ₦848 billion made in 2016.
Dangote Cement leads revenue wise
Dangote Cement led in terms of revenue share. The company earned ₦805,582,000,000 or 71.6% of total revenue Lafarge takes the 2nd position with ₦299 billion or 26.6% of total revenues made. Cement Company of Northern Nigeria (also known as Sokoto Cement) brings up the rear with 1.8% of total revenue.
Price increases were the revenue driver
The increase in revenue was largely due to an increase in cement prices as volumes produced and sold dropped. While Dangote Cement and CCNN released production volumes, Lafarge Africa did not.
Cement volumes sold by Dangote Cement dropped slightly from 23.5 million tonnes in 2016 to 21.9 million tonnes in 2017. Cement Company of Northern Nigeria (CCNN)’s deliveries dropped slightly from 488, 000 in 2016 to 467,000 tonnes in 2017.
Dangote Cement made the most profit
CCNN had the biggest increase in profit in terms of percentage. Profit after tax increased by 157% from ₦1.2 billion in 2016 to ₦3.2 billion in 2017, the highest in the company’s history.
Dangote Cement made the largest profit in absolute terms. Dangote Cement made a profit after tax of ₦204 billion in 2017, up 43% from the ₦142 billion made in 2016.
Lafarge Africa was the laggard with a loss after tax of ₦34.6 billion.
Year to date performance
In terms of price appreciation, CCNN is the best performer with a 94.4% increase in price, year to date. Dangote Cement takes the 2nd position with a 12.17% gain year to date. Lafarge Africa is last with a 1.98% decline in share price.