Aliko Dangote’s cement company is gradually losing its market share to rivals, BUA Cement, owned by Abdulsamad Rabiu, and Lafarge, as Nigerians bought N1.18 trillion worth of cement in the First Half (H1) of 2022 from these firms.
The cement war between the three major companies has driven the industry’s revenue up by 23.2% in H1 2022, representing N223.34 billion gain, when compared to the N959.83 billion they grossed in H1 2021.
According to Ripples Nigeria’s analysis, BUA Cement closed the period as the biggest gainer, after increased demand for its product saw it account for 15.9% of their combined turnover, rising from 12.9%.
Dangote Cement, however, failed to increase its market revenue share, closing the period in review with 68.2%, declining from the 71.94% Aliko Dangote’s firm accounted for in H1 2021, while Lafarge grew its market share from 15.1% to 15.7%.
Further analysis showed that Dangote Cement’s performance negatively affected the net profit of the industry, as the market recorded N270.87 billion in H1 2022, indicating 2.85% year-on-year growth, having posted N263.34 billion profit after tax during the same period last year.
How BUA Cement, Dangote, and Lafarge performed
This industry report grade the companies’ performance from the best performing to the least.
BUA Cement (+51.7%)
BUA Cement ended the first half of 2022 as the best performing cement company after growing its revenue by 51.7%, generating over N188.56 billion, which surpassed the N124.27 billion worth of cement traded in H1 last year.
Although, the net profit of Rabiu’s company fell behind turnover in terms of growth, recording 41.4% increase, as BUA Cement reported N61.36 billion profit after tax between January to June 2022, above the N43.39 billion of H1 last year.
Lafarge Cement (+28.6%)
Lafarge Cement also outperformed Dangote Cement, but fell behind BUA Cement after analysis showed that the firm sold N186.58 billion worth of cement in the first half of this year, growing 28.6% in contrast to the N145.01 billion posted during H1 2021.
The company also reported a year-on-year growth of 32.08% in profit after tax, which settled at N37.41 billion in the first six months of this year, surpassing the N28.32 billion net profit of H1 last year.
Dangote Cement (+17.01)
Despite maintaining its position as the market leader in the cement market, Dangote Cement fell behind both BUA Cement and Lafarge due to its revenue growth of 17.01%, as turnover of N808.03 billion was reported for year-June 2022, above the N690.54 billion generated in H1 2021.
Aside from its revenue reporting slow growth compared to its market rivals, Dangote was the only cement firm that failed to grow its net profit during the period in review, as it declined by -11.3% year-on-year, from the N191.63 billion reported in H1 last year to N172.10 billion same period this year, losing N19.52 billion in the processing.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Poorly executed classroom projects force children out of school in Niger State
Once a vibrant hub of learning for pupils, Kodo Primary School now resonates a stark contrast to its former days...
SPECIAL REPORT: Shell’s inaccurate data raises questions around efforts to control methane emissions in Nigeria
Much worse for the environment than carbon dioxide, despite global efforts to control methane, emissions continue soaring. With over a...
FEATURE…Missing Rig Workers: Tragedy, Injustice and the Depthwize cabal
The serene landscape of Ovhor in Delta State bore witness to a disaster that shook the nation’s conscience. The capsize...
FEATURE… In the shadow of kidnappers: The story of Nigeria’s albatross
For decades, Nigeria has been grappling with a problem that has threatened the safety and stability of its people: kidnapping....
FEATURE: The falling standard of education in Nigeria today: Whose Fault?
Over the years, education has proven to be the fulcrum facilitating national development in any state. Through education, knowledge is...