The major cement producers in Nigeria raked in a sum of N2.35trillion as turnover in 2022, surpassing the N1.93 trillion recorded in the previous year by 21.6%. This is according to data compiled by Nairalytics, the research arm of Nairametrics.
According to the compilation from their respective audited financial
statements for the year 2022, they printed a collective profit after tax of
N536.9 billion in the review year, in contrast to the N505.5 billion recorded in
the prior year.
The impressive growth in their top and bottom lines is despite the economic
headwinds in the country, which disrupted the business environment, ranging
from the FX crisis, rising energy prices, and wilted disposable income of
citizens, amongst others.
The companies considered in this article are Dangote Cement, BUA Cement,
and Lafarge Africa.
A surge in revenue despite the drop in volume: It is worth noting that the
increase in their sales revenue was largely due to the increase in the price of
cement products during the period as sales volume dropped in contrast to the
previous year.
For example, Dangote Cement sold a total of 27.77 million tonnes of
cement in 2022, 5.1% lower than the 29.27 million tonnes that were sold
in the preceding year, yet revenue from the sale of cement production
increased by 17%.
The decline in customer purchases was on the back of rising inflationary
pressure in the country, which had risen to record levels during the year.
In a bid to maintain favourable margins, cement-producing companies as
well as other organizations in the manufacturing industry transferred the
cost to the customers by increasing the selling price, contributing to a
significant increase in sales revenue for the year.
Source: Nairametrics
