Dangote Cement, 2 others record N1.24trn revenue in one year

Motolani Oseni

Dangote Cement Plc, Lafarge Africa Plc and Cement Company of Northern Nigeria (CCNN) increased their revenue by 10.4 per cent to N1.24 trillion in 2018 against N1.12 trillion incomes declared in 2017, The Daily Times checks revealed.

But it is worthy of note that the Federal Government spending on infrastructure and building expansions in key major cities increased during the year under review.

Also, Nigeria’s cement the market recovered well in 2018 and estimated total market consumption was 20.7million tonnes (Mt), up 11.0per cent on the 18.6Mt, sold in 2017.

The breakdown of the figure showed that Dangote Cement continued to dominate revenue generation in Nigeria, followed by Lafarge Africa and CCNN.

According to analysts in the cement producing sector, the market growth of the sector was stronger in the first seven months of 2018, before unusually heavy rain and flooding affected demand in key regions, which depressed sales from mid-August to mid-November.

Rivalry in the cement business has progressed with Dangote Cement being the largest manufacturer in the country with about 72.6per cent of market revenue in 2018, followed by Lafarge Africa with 25per cent share of customer wallets and CCNN picking up the balance of two per cent of consumer spending on the building item.

Our correspondent can report that Dangote cement in 2018 reported a 12 per cent increase in revenue to N901.2 billion from N805.58 billion in 2017.

Lafarge Africa reported N308.4 billion in 2018, 3.1 per cent above N299.15 billion reported in 2017 while CCNN in 2018 reported a 62 per cent increase in revenue to N31.7billion from N19.6 billion reported in 2017.

Specifically, Dangote cement total cement sold was 23.5 Mt in 2018 from 21.9 Mt in 2017.

The company’s Nigeria operations increased volumes by 11.4per cent to 14.2Mt in 2018, including export sales of 0.7Mt. Domestic sales in Nigeria were 13.4Mt, compared to 12.0Mt in 2017, because of higher building activity as the economy recovered from recession.

In Nigeria, Dangote cement reported that 13.3Mta Obajana plant sold 6.7Mt of cement in 2017, with the 12.0Mta Ibese plant also selling nearly 6.7Mt.

The company’s 4.0Mta plant at Gboko, in Benue State, was mothballed for most of the year but sold more than 0.8Mt.

Nigeria’s cement rivals appear to serve distinct market segments. Although the competition is about to disrupt this trend, CCNN is focused in the North, while Dangote Cement and Lafarge Africa serves the southern part of the country.

According to 2018 Global Cement Directory, Dangote Cement is the 10th largest cement producer in the world. With a total capacity of 43.8Mt per year and 12 plants (10 integrated and two grinding plants), it is Africa’s largest home-grown cement producer.

Group revenue increased by 11.9 per cent, from N805.6 billion to N901.2billion, driven by increased volumes in Nigeria and a 9.5per cent increase in revenues per tonne in Pan-African operations.