New Cement Firm Emerges as Dangote, Others See Jump in Production Costs in 2024
- Nigeria’s cement manufacturing firms have seen a rise in their production costs
- The cement firms Dangote, BUA, and Lafarge saw their production costs soar by 97% in the first half of the year
- The development follows the emergence of a new firm, Mangal Cement, which promised a boost in production
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The development follows the emergence of a new cement firm, Mangal Ceement, which analysts believe will change Nigeria's cement pricing equation.
Mangal Cement, which has already commenced production, disclosed that it hopes to begin producing about 400 trucks of cement daily.
Source: Getty Images
Mangal Cement speaks on pricing
The company recently addressed the pricing of its cement, which social media users say was sold for N6,000 per bag.
The company, however, issued a public statement regarding the cost of its cement product.
Reacting to claims that the price of its bag of cement is N6,000, Mangal Cement said in a message released via X that the information shared on social media was inaccurate.
It said:
“Dear Valued Customers, We have recently noticed false information circulating on social media regarding the price of our cement.
"For accurate and up-to-date pricing information, we kindly ask that you contact our customer service lines directly. Our team can provide all the necessary details to make informed purchasing decisions.
"Please disregard any pricing information not from our official channels or authorized dealers. Mangal Industries is committed to creating value for all its stakeholders.
Dangote, BUA, others declare running costs
About 13 manufacturing firms listed on the Nigerian Exchange Limited saw their production costs soar by 97% in the first half of 2024.
The firms which include Dangote Cement, BUA Foods, Nigerian Breweries Plc, Nestle Nigeria Plc, BUA Cement, Lafarge Africa, Dangote Sugar Refinery, International Breweries, Guinness Nigeria, Unilever Nigeria, Cadbury, Nascon Allied Industries, and Champion Breweries Plc.
Analysis of the cement firms
However, the Legit.ng analysis shows that the cement firms had the highest production costs during the period under review.
According to the manufacturers’ financials, the firms’ sales increased to N3.05 trillion from N1.55 billion in 2023.
BUA Cement
BusinessDay reports that the cement company saw its production cost rise to N254.7 billion from N144.9 billion.
The company's revenue grew to N363.9 billion from N221.1 billion.
Profit after tax stood at N34.3 billion, a drop from the N63.6 billion.
The company's administrative costs increased to N11.2 billion from N6.13 billion, while selling and distribution costs rose to N16.3 billion from N14.03 billion.
Dangote Cement
The company’s production costs rose to N833.3 billion from N383.1 billion.
The Cement firm’s revenue grew to N1.76 trillion from N950.8 billion, administrative expenses grew to N98.8 billion from N45.5 billion, and selling and distribution expenses rose to N304.5 billion from N153.2 billion.
Lafarge Africa
Lafarge Africa’s production costs rose to N147.9 billion from N94.29 billion.
The company’s revenue rose to N295.4 billion from a loss of N35.5, administrative costs rose to N16.8 billion from N11.2 billion, and selling and distribution costs rose to N53.6 billion from N40.3 billion.
SON sends message to Dangote, BUA, other manufacturers
Legit.ng earlier reported that Dr. Ifeanyi Chukwunonso Okeke, the Director General/Chief Executive of the Standard Organization of Nigeria (SON), has instructed building engineers, cement manufacturers, and block makers to uphold standards to reduce the number of building collapse incidents in the country.
He said this during a one-day sensitisation training for block moulders in Abeokuta, Ogun State, on Thursday, April 18.
The DG, represented by the Director of Southwest Talatu Ethan, noted that building collapses pose a severe risk to Nigeria since they jeopardise the country's construction industry and overall progress.
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Source: Legit.ng
