Nigeria’s cement makers’ revenue hit N1.29tn in 9 months

Two of Nigeria’s biggest cement producers, Dangote and BUA rode on the continued ban on importation of the product to grow their profits by 31.71% to N1.29 trillion from January to September.

The huge revenue comes as Nigerians continue to bemoan the high cost of building their dream homes.

Data obtained from interim financial statements submitted to the Nigerian Exchange on Friday showed Dangote Cement grew its revenue to N1.02 trillion in the first nine months of 2021 from N761.4 billion recorded in the same period in 2020.

BUA Cement revenue jumped to N186.9 billion from N156.5 billion in the first nine months in 2020.

For context on the impressive revenue performance, the N1.29 trillion declared outpaced the total non-oil tax revenue of the Federal government from January to August this year.

However, it wasn’t a smooth ride for the cement makers as production cost ate into their revenue.

Dangote cost of sale in 2021 rose to N443.3 billion from N246.6 billion spent in the same period last year.

READ ALSO: Investors gain N23bn as Honeywell, Dangote Cement lead Nigeria’s stock market recovery

BUA cement cost of sales rose by 15.48 percent in 2021 to 99.65 billion from N86.28 billion spent last year.

Despite the rising cost it was still a good first nine months for the two companies.

As profit for the period for Dangote Cement reached N278.25 billion from N208.6 in 2020.

BUA also recorded an increase in comprehensive profit to N65.90 billion from N53.48 billion same period last year.

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