Ashaka impacted by insurgency, lengthy rainy season

Nigeria-based Ashaka Cement Plc’s first-quarter profit fell by 53.54 per cent to NGN889.01m (US$4.5m) in the first three months of this year as insurgency disrupted operations and a lengthy rainy season weakened demand.

Revenue over the Jan-March period declined by 29.84 per cent to NGN4.56bn.

Ashaka Cement's operations have been disrupted by Boko Haram as the company is located in Gombe State in the north of the country.

Cost of sales reduced by 11.74 per cent to NGN2.93bn in 2015 versus NGN3.32bn the previous year as the company increased the use of local coal in place of the expensive LPFO to power plant at factories.

Gross profit was down by 48.87 per cent to NGN1.63 pe rcent due to the sharp fall in sales. Gross profit margin reduced to 35.74 percent in 2015 compared with 48.74 per cent the previous year.

Net margin slid to 19.50 per cent in the review period as against 29.50 per cent last year.