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Business News of Monday, 6 March 2023


Dangote, BUA Cement, Lafarge rake in whopping N2.35trn in 12 months

Dangote, BUA Cement, Lafarge and others Dangote, BUA Cement, Lafarge and others

Dangote, BUA Cement, and Lafarge, Nigeria's three major cement producers, raked in about N2.35 trillion as turnover in 2022, overtaking the N1.93 trillion recorded in the previous year by 21.6 per cent.

Data shows that the firms' audited financials for 2022 have a profit after tax of N536.9 billion in the review year, in contrast to N505.5 billion recorded in the previous year.

Breakdown of companies' performances

According to reports, the companies' stellar growth happened despite the economic headwinds in Nigeria, which disrupted the business environment, such as the Forex crisis, rising energy costs, and shrinking disposable income for Nigerians.

The increase in revenue was primarily due to an increase in the prices of cement products during the period, as sales dropped in contrast to the year before.

Dangote Cement sold N27.77 million tons of cement in 2022, 5.1 per cent lower than the 29.27 million tonnes sold the year before, despite increasing cement production by 17 per cent. The reduction in customer purchases came amid inflationary pressure in Nigeria, which rose to the highest in 2023.

The company earned the highest revenue from the N1.62 trillion, representing 68.8 per cent of the total income made by the three firms. It grew its revenue by 17 per cent year-on-year from N1.38 trillion in the previous year.

The cement company's cost of goods spiked by 20.3 per cent to N662.9 billion, while its gross profit stood at N955.4 billion. The company's profit after tax increased slightly by 4.9 per cent year-on-year to N382.3 billion.

However, Lafarge Africa saw a 27.3 per cent increase from N293.1 billion recorded in 2021. The sales cost stood at N177 billion, while the profit after tax was N53.63 65 billion.

BUA Cement increased its revenue by 40.3 per cent from N257.3 billion recorded in 2021 to about N360.9 billion in 2022. The company's cost of sales went up by 45.1 per cent to N197.9 billion, eclipsing its stellar gains recorded in revenue growth. It posted N101.01 billion as a profit in the review period.