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INDUSTRY REVIEW: Nigerians spend N770bn on cement in 3 months; BUA, Lafarge fail to grow profit in Q3



Within three months, Nigerians spent N769.96 billion on cement, with BUA and Lafarge Wapco failing to grow their net profit in the third quarter (Q3) of 2023.

According to the analysis of the financial statements released by Dangote Cement, BUA and Lafarge, the sector saw about a 46.24 percent increase in revenue, which rose from N526.52 billion in Q3 2022, to N769.96 billion in Q3 2023.

The revenue growth fell below the industry’s cost of production, as it increased by 50.40 percent, with the producers spending N377.88 billion on manufacturing their products in Q3 2023, compared to N251.25 billion spent in the same period last year.

At the close of the review period, the market recorded N115.21 billion in profit after tax, up from N61.13 billion in the third quarter of 2022.

What you need to know

Dangote maintained its dominance in the sector, accounting for 73.22 percent market share by revenue, up from 70.12 percent.

BUA Cement also increased its market share during 2023 third quarter, holding 14.91 percent, against the 14.06 percent held in the same period in 2022.

Lafarge lost its second spot in the market share to BUA after its stake fell from 15.81 percent to 11.87 percent during the review period.

Best-performing cement companies in Nigeria

The list was determined by revenue growth during the third quarter of 2023.

BUA Cement

BUA Cement ended the review period as the best-performing cement company by revenue growth after closing Q3 with a 55.05 percent increase in turnover.

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• The company, owned largely by Rabiu Abdulsamad, generated N114.79 billion in revenue between July to September 2023, surpassing the N74.03 billion recorded within the same period last year.

• However, the majority of the turnover was gulped by production costs, after BUA Cement registered N71.49 billion as expenses, compared to N45.32 billion reported in Q2 2022.

• The 57.74 percentage increase in production cost ate deep into BUA’s earnings, with the company suffering a 1.60 percent or N201.78 million drop in net profit, as it posted N12.44 billion PAT, against N12.65 billion bottom line recorded last year Q3 2022.

Dangote Cement

Dangote Cement followed BUA closely after notching a 52.69 percent increase in turnover, which settled at N563.76 billion in the third quarter this year, against the N369.21 billion generated in the corresponding period in 2022.

• The company could not also tame the cost of production, as expenses rose by 60.91 percent from N161.37 billion in Q3 last year to N259.65 billion in the review period.

• Despite the surge in expenses, Dangote was the only company to end the period with growth in net profit, grossing N98.94 billion – an increase of 141.35 percent compared to N40.99 billion profit after tax reported in Q3 last year.


Lafarge came third on the list after recording the least growth in revenue, posting 9.77 percent, having earned N91.40 billion in turnover in Q3 2023, contrasting with N83.26 billion grossed in Q3 last year.

• However, compared to its market rival, Lafarge was the only cement company to tame its cost of production to a single digit, recording a 4.87 percent increase, after expenses gulped N46.73 billion in Q3 2023, above the N44.56 billion spent the same quarter a year before.

• This, however, didn’t translate to growth in the bottom line, as Lafarge suffered a 48.92 percent decline in profit after tax within the review period, reporting N3.82 billion net profit, which fell short of the N7.48 billion nicked in Q3 2022.

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