Dangote Cement, BUA Cement and Lafarge Africa Plc have reported a surge in earnings in the first three months of this yearThe companies’ earnings were driven by new cement prices and increased sales in the review period Domesticc cement prices have remained high, ranging from N7,400tod N8,000 per 50 kg bag, from an average of N6,000 a year ago
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Three cement makers, Dangote Cement, BUA Cement, and Lafarge Africa, reported a combined N3.632 trillion sales revenue in Q3 2024.
The amount represents a 69.3% jump from N2.140 trillion combined revenue reported by the firms in the same period in 2023.
BUA Cement, Dangote Cement and Lafarge Africa report a surge in profit in 2024
Credit: Novartis
Source: Getty Images
Cement prices change drastically in 2024
Nigeria’s three top cement manufacturers have recorded a whopping surge in sales at the back of new prices despite economic challenges which disrupted the business terrain, including the FX crisis and rising energy costs.
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Despite the headwinds, the companies achieved outstanding financial performance driven by price changes.
According to reports, domestic cement prices have remained high, ranging from N7,400 and N8,000 per 50 kg bag, from an average of N6,000 a year ago, showing a broader macroeconomic situation.
Also, increased sales volume and higher product prices resulted in the substantial earnings of these companies.
Breakdown of top earners
During the review period, Dangote Cement recorded the highest net sales of N2.56 trillion, a 69.06% from N1,515 trillion recorded in the first nine months of last year.
BUA Cement recorded N583.405 billion in sales, representing a 73.70% increase from N335.863 recorded in the same period last year.
Lafarge Africa also saw its earnings jump by 65.87%, hitting 479.497 billion relative to N289.081 billion in 2023
Analysts have said that the increase in the firm’s sales revenues was due to the rise in prices and high demand for construction and infrastructure in Nigeria.
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Chinese firm to take over 83% Holcim stake in Lafarge
Henzodaily.ng earlier reported that Holcim AG will sell its 83.8% share in Lafarge Africa to Huaxin Cement Co., a Chinese cement company, in a $1 billion deal.
A statement by the group on Sunday, December 1, 2024, disclosed that the deal will be finalised in 2025, subject to regulatory approval.
The new deal to double Lafarge’s value on NGX
If the new owners do not delist from the Nigerian Exchange Limited (NGX), the deal will double Lagarge’s market capitalisation on the NGX.
Lafarge is currently valued at N934 billion, about $556 million on the NGX.
Holcim’s move follows a trend of several divestment steps by the company.
According to reports, in 2021, Holcim divested from its Zambian operations by selling Lafarge Zambia to the same Hauxin Cement Co.
Traders sell 50kg bags of Dangote, BUA, and others below N9,500
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Henzodaily.ng earlier reported that Financial Derivatives Company Limited has reported that the average price of a 50kg bag of cement dropped to N7,500 in October 2024.
The new price represents a 21.05% reduction compared to the N9,500 average price in September 2024.
FDC disclosed the changes in its latest commodity update for November.
Source: Henzodaily.ng