Despite the economic hardships faced by many Nigerians, leading cement producers continue to post remarkable financial results. Cement companies like Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc have seen sales volumes, revenue, and profits soar in 2024. In the first half of the year (H1'24), combined sales revenue reached N2.419 trillion, a 76.6% increase compared to N1.049 trillion in H1'23.
The price of cement in Nigeria has risen sharply, with a 50kg bag now selling for between N7,400 and N8,000, up from about N6,000 in 2023. However, the demand for cement remains strong, driven by increased construction activities from both public and private sectors.
Key Performance Highlights:
- Dangote Cement Plc: The industry leader reported an 85.1% increase in net sales, with revenue rising to N1.76 trillion. Its sales volume grew by 3.8% overall, with its Nigerian operations seeing a 10.93% increase in volume.
- BUA Cement Plc: BUA recorded a 64.6% rise in sales, amounting to N363.94 billion. The company expects further growth, especially after the recent expansion of its production capacity.
- Lafarge Africa Plc: Lafarge posted a 45% increase in revenue, reaching N295.58 billion, and is optimistic about continued growth driven by Nigeria’s growing construction sector.
Investment analysts attribute the surge in sales and profits to increased government capital expenditure, with projections for continued growth in the cement industry throughout 2024.
