Cement manufacturers report N710 billion profit

In 2023, Nigeria’s three major cement manufacturers, namely Dangote Cement, BUA Cement, and Lafarge Africa, collectively reported a remarkable profit of N710.03 billion. This significant increase in profitability was fueled by a surge in sales and higher prices, which alleviated operational pressures, according to a recent sectoral intelligence report by The Nation.

The trio witnessed substantial growth in both sales and profitability, with total sales escalating from N2.35 trillion in 2022 to N3.076 trillion in 2023. Operating profit also saw a notable rise from N799.79 billion to N910.99 billion during the same period.

Despite the overall positive performance, there were challenges, particularly in foreign exchange (forex) losses, which impacted the net profit of the companies. Although profit before tax experienced a slight decline from N713.89 billion in 2022 to N710.03 billion in 2023, net profit after taxes surged from N536.97 billion to N576.17 billion.

BUA Cement encountered a significant slowdown in profitability, contributing to the decline in pre-tax profit.