Cement Producers in Nigeria Announce Huge Profit Amid Calls by FG To Crash Prices to N7,000
- New data show that Nigerian cement makers, including Dangote, BUA, and Lafarge, recorded huge profits
- Dangote Cement remains the most profitable cement company, followed by Lafarge and BUA Cement
- The increase in revenue comes amid calls from the Minister of Works, David Umahi, for cement prices to be reduced to N7,000
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Three cement producers listed on the Nigerian Exchange Limited (NGX), Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement Plc have made a combined revenue of N677.34 billion in 2024
This represents an increase of 17.55% from the N576.18 billion reported in 2023.
Source: UGC
Breakdown of cement sales
An analysis by Legit.ng shows that Dangote Cement remains Nigeria’s most profitable cement company, reporting a profit of N503.2 billion for the full year 2024, a 10% increase from N455.6 billion in 2023.
The group’s revenue surged by 62%, reaching N3.58 trillion in 2024, up from N2.21 trillion in the previous year. Gross profit stood at N1.9 trillion, maintaining a 54% gross margin, the same as in 2023, when it recorded a gross profit of N1.2 trillion.
Further analysis of Dangote Cement’s financials reveals that operating profit grew by 57% to N1.15 trillion in 2024, compared to N734.3 billion in 2023.
However, the company faced significant financial pressures. Interest expenses totalled N448.1 billion, while foreign exchange losses from its international operations amounted to N249 billion, bringing total interest expenses for the year to N700 billion.
Despite these challenges, pre-tax profit rose to N732.5 billion, up from N553.1 billion in 2023. After accounting for a net tax expense of N229.3 billion, net profit for the year stood at N503.2 billion.
Source: Getty Images
Other breakdowns
BUA Cement reported the second-highest revenue among other cement makers in the first three months of 2023, BUA Cement Plc has reported profit before tax of N99.630 billion for the financial year ended December 31, 2024, representing a 48.20% year-on-year (YoY) increase from 2023.
Other key breakdowns include:
- Revenue: N876.47 billion
- Cost of sales: N576.21 billion
- Gross profit: N300.26 billion
- Selling & distribution expenses: N42.86 billion
- Administrative expenses: N22.06 billion
- Operating profit: N144.30 billion
Lafarge cement
Lafarge Africa Plc has reported a profit after tax of N100.1 billion for the financial year ended December 31, 2024, representing a 96% increase from the N51.1 billion recorded in 2023.
The cement manufacturing giant also recorded a 72% surge in revenue, rising to N696.8 billion in 2024 from N405.5 billion in the previous year.
FG asks Dangote, BUA, others to reduce cement price
In a previous report by Legit.ng, the federal government called on cement manufacturers to reduce the price of a bag to N7,000.
David Umahi, the Minister of Works, made this appeal during a meeting with MTN and RCC Company Nig. Ltd.
He urged cement manufacturers to lower their prices and warned that he would report them to the President if they did not comply.
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Source: Legit.ng
