- Nigerian cement makers recorded a combined profit increase to over N156.55 billion in the first three months of 2022
- The increased profit is coming on the back of the increasing cost of production especially due to energy cost
- Dangote cement remains the most profitable cement business and its gains led the profit table
Three cement producers listed on the Nigerian Exchange Limited (NGX), Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement Plc have made a combined profit of N156.55 billion in the first quarter (Q1) of 2022.
This represents an increase of 29 percent from N121.2 billion reported in the first quarter of 2021.
ThisDay reports that the retail cement prices in Nigeria reportedly rose from around N2,400-N2,600 per 50kg bag in 2020 to an average price of N4,000 at the end of March 31, 2022.
Breakdown of cement sales
Meanwhile, Dangote Cement, Nigeria’s largest producer and the second most capitalized firm on the NGX, reported 18 percent increase in its profit to N105.85 billion in Q1 2022 from N89.7 billion in Q1 2021.
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The cement giant generated N413.18 billion in revenue in Q1 2022, representing an increase of 24.2 percent over the N332.65 billion recorded in Q1 2021.
However, Dangote Cement sales volumes in Q1 2022 were hampered by disruptions to gas supplies domestically and by high freight rates restricting its exports of cement and clinker to Cameroon, Ghana, and Sierra Leone.
Its sales volumes of cement fell by 3.6 percent year-on-year to 7.25 million metric tonnes in Q1 2022 from 7.52 million metric tonnes in Q1 2021.
While Dangote has continued to retain its spot as the largest cement manufacturer with a plant capacity of 35.2 million metric tonnes.
BUA has overtaken Lafarge to the second position, with a total plant capacity of 11mmt while Lafarge stays at 10.5mmt.
In addition, Lafarge Africa reported 92.18 percent increase in profit to N17.6 billion in Q1 2022 from N9.14 billion in Q1 2021, while its revenue rose by 27 percent to N90.61 billion in Q1 2022 from N71.47 billion reported in Q1 2021.
Dangote, Rabiu companies dominate the list of most valuable manufacturing companies
Legit.ng had earlier reported that Dangote cement and BUA cement are the two most valuable listed manufacturing companies in Nigeria.
BUA foods another company owned by Abdulsamad sat in the third position while Nestle Nigeria completed the list of top four valuable manufacturing companies.
The ranking of the banks is according to data from the Nigerian Exchange Group (NGX) and compiled by Nairametrics.