CCNN first-half net income boosted by cost cuts, Nigeria

The Cement Company of Northern Nigeria (CCNN) achieved a 91 per cent increase in profit for the first six months of the year helped by a reduction in operating and financing costs.

For the first six months to the end of June, the Sokoto-based company’s net profit climbed to NGN1.58bn from NGN832.2m in the same period of last year. The rise is attributed cost control measures as distribution and administrative expenses fell by 44 per cent to NGN1.32bn in 1H14 from NGN2.34bn versus 1H13. Similarly, the operating expense ratio was down to 14.05 per cent compared to 26.55 per cent in first six months of last year. CCNN cost of sales also fell by one per cent to NGN5.71bn. 

The company, in which the BUA group owns 51 per cent, is currently investing US$300m to expand installed capacity to 1.5Mta from the current 0.55Mta.