The Cement Company of Northern Nigeria (CCNN) said it has recorded gross profit of N3.3 billion after tax and N7.6 billion before tax in the 2017 financial year despite numerous challenges.
The Executive Chairman of BUA Group, AbdulSamad Rabiu, who made this known on Thursday in Sokoto at the company’s 39th Annual General Meeting identified shortage of energy as the primary challenge.
Mr Rabiu said the company had revenue of N19.6 billion for the 2017 financial year as against N14.1 billion recorded in 2016 though cement demand in Nigeria came down to almost 20 per cent compared to 2016.
He described the revenue increase as the highest in the company’s history and said improved cement prices and efficient cost management were factors that led to the achievement. Mr Rabiu then assured stakeholders of sustenance in the figure and dominance in the home market and also penetration into some key strategic markets.
According to Mr Rabiu, “Low Pour Fuel Oil (LPFO) which is the main energy used by the company has to be supplied from sources other than the Kaduna Refinery which is the closest to CCNN’s plant and had not been supplying LPFO for quite a long time now”.
“Cement demand in Nigeria in 2017 came down by almost 20 per cent compared to 2016. During the year 2017, the company had revenue of N19, 588,260,886 compared to the N14, 087,553,499 it recorded in 2016.”
Continuing: “Improved Cement prices and efficient cost management contributed to higher revenue and the good margin that was the best witnessed so far in the company’s long history. This is indeed an excellent achievement which we hope to sustain in the company going forward.
The AGM endorsed the gross dividend of N1.25k recommended by the Board of Directors of the Company and Total equity and liabilities of CCNN, rose from N20 billion in 2016 to N24.7 billion for the financial year ended.