Cement Manufacturers Earned N696.7bn Revenue Despite Covid- 19

Nigerian cement makers have shown resilience in the first half 2020 as the companies witnessed revenue growth by 3.4 percent to  N696.7bn.

Nigeria’s cement makers include Dangote Cement Plc, LAFARGE WAPCO Plc and BUA Cement Plc.

The companies are in the business of manufacturing and marketing of cement and other cementitious products including Ready-Mix Concrete, Aggregates and Fly-Ash among others.

The result comes despite the negative impact of Covid- 19 on the Nigerian economy and the countries where the companies subsidiaries equally reside.

Nigeria’s cement makers had between January to June 2019 realised a combined revenue amounting to N675.5bn, but witnessed revenue surge by N23.2bn by the end of June 2020.

The companies also witnessed a surge in profit by 16 percent to a combined total of N184.3bn by the end of June 2020, from N158.9bn recorded during their half year operation for 2019.

A breakdown of the companies individual earnings shows that Dangote dominated the industry by covering 68.3 percent of the total market share of revenue.

Dangote Cement profit after tax for the period also constituted 64.4 of the combined profits for the three bluechip companies.

The company’s revenue witnessed growth by 1.95 percent to N476.9bn between January to June 2020.

According to the company’s financial report, revenue growth witnessed during the period was N7.12bn higher than the  N467.7bn recorded in the same period of 2019.

Dangote Cement equally recorded growth in profit after tax of N126.1 from  N119.2bn recorded in the corresponding quarter of 2019.

Lafarge WAPCO Plc revenue for the period accounted for 17.25 percent of the total revenue realised by the cement makers for the period.

The company witnessed revenue growth in the half year of 2020 by N2.7bn to N120.5bn from  N117.9bn recorded by the end of June 2019.

The company recorded the highest profit margin by N14.32bn  to N23.33bn  from  N9bn in 2019.

Lafarge profit for the period represents 158.9 percent growth  recorded last year, which is the highest growth in profit for all the cement makers during the period.

BUA Cement Plc  revenue during the first half period ending June accounted for 14.5 percent of the total.

The company witnessed revenue surge by N11.4bn to N101.3bn from N89.9bn recorded in their half year operation for 2019.

The company also recorded growth in profit by N4.2bn to N34.8bn by the end of June 2020.

BUA had in the first half of 2020 recorded profit after tax of N30.6bn.