Nigerian cement sector expands 16% YoY in 1H23

Nigerian cement sector expands 16% YoY in 1H23
07 August 2023

Three of Nigeria’s leading cement producers have reported combined revenue of NGN1.37trn (US$1788m) in the opening six months of 2023, despite the challenging business environment. According to The Sun, Dangote Cement, BUA Cement and Lafarge Africa Plc’s combined revenue marks a 16.1 per cent increase in the country’s cement industry sector compared to the same period last year. Combined profit after tax for the three companies also improved, up 2.5 per cent YoY to NGN277.7bn, of which Dangote Cement accounted for almost 70 per cent. 

Dangote Cement saw its revenue improve 17.7 per cent YoY in the 1H23 to reach NGN950.8bn. However, stubbornly high fuel and power costs caused its profit before tax to fall to NGN239.9bn, compared to NGN264.9bn in the 1H22. Net profit saw a marginal increase YoY to NGN178.6bn in the 1H23. 

BUA Cement saw its profit after tax advance 3.7 per cent YoY to NGN63.6bn, while its profit before tax came in at NGN76.4bn, versus NGN74.4bn in the first six months of 2022.

Lafarge Africa Plc recorded revenue of NGN197.7bn in the 1H23, up 5.9 per cent YoY. Higher tax expenses, however, caused its profit after tax to decline 5.2 per cent YoY. 

Published under Cement News