Snapshot of cement makers’ H1 performance

Nigerian cement makers have recorded an uptick in profit after tax despite headwinds from a challenging operating environment.

The cement makers which are Dangote Cement, BUA Cement, and Lafarge Africa recorded cumulative profit after tax to N227.7 billion in the first half of 2023, a 20 percent increase from N270.87 billion.

Cement makers saw operating expenses climb 17 percent to reach N270.4 billion in the first half of 2023 from N230.68 billion in a similar period in 2022.

Here are seven highlights of Cement makers’ financial performance in the first quarter of 2023:

Profit after tax increases by 20%

Nigerian Cement maker’s profit after tax grew to N227.7 billion in the first half of 2023, a 20 percent increase from N270.87 billion in a similar period in 2022.

Dangote Cement’s profit stood at N178.6 billion in the first half of 2023 from N172.1 billion in the first half of 2022.

BUA Cement recorded an increase in profit after tax to N63.62 billion from N61.36 billion in the reviewed period.

Lafarge Africa’s profit after tax stood at N35.48 billion in the first half of 2023 from N37.41 billion in the first half of 2022.

Sales surge amid increase in inflation

Cement makers recorded a 23.4 percent increase in sales to N1.37 trillion in the first half of 2023 from N1.11 trillion in the first half of 2022.

Dangote Cement’s revenue grew to N950.83 billion in the first half of 2023 from N808.04 billion in the first half of 2022.

BUA Cement revenue stood at N221.07 billion from N188.56 billion in the comparable period.

Lafarge Africa’s revenue amounted to N197.68 billion in the first half of 2023 from N186.59 billion in the similar period of 2022.

Cement makers remain afloat despite harsh economic conditions

Cement makers grew liquidity by 121 percent with a record of N697.99 billion cash and cash equivalents in the first half of 2023 from N315.88 billion in the same period of 2022.

Dangote Cement’s cash and cash equivalents grew to N303.03 billion from N108.89 billion.

BUA Cement cash and cash equivalent stood at N217.35 billion from N128.24 billion in the comparable period.

Lafarge Africa’s cash and cash equivalents increased to N177.61 billion in the first half of 2023 from N78.75 billion in the first half of 2022.

Operating expenses growth driven by rising inflation

Cement makers’ operating expenses grew 17 percent to reach N270.4 billion in the first half of 2023 from N230.68 billion in the similar period of 2022.

Dangote Cement’s operating expenses increased to N198.71 billion in the first half of 2023 from N169.4 billion in the first half of 2022.

BUA Cement’s operating expenses grew to N20.16 billion from N13.52 billion in the period reviewed.

Lafarge Africa’s operating expenses increased to N51.53 billion from N47.76 billion in the comparable period.

Net foreign exchange loss/ gain

Dangote Cement’s net exchange loss on foreign-denominated transactions stood at N113.63 from N40.66 billion in the comparable periods.

BUA Cement’s unrealised foreign exchange loss stood at N1.71 billion in the first half of 2023 while no unrealised foreign exchange loss was recorded in the similar period of 2022.

Lafarge Africa’s net foreign exchange gain stood at N2.34 billion in the first half of 2023 while no figure was recorded in the same period of the previous year.

Read also: Snapshot of cement makers’ H1 performance

Taxation

Dangote Cement’s income tax amounted to N61.26 billion in the first half of 2023 from N92.79 billion in 2022.

Lafarge Africa paid N19.84 billion as income tax in the first half of 2023 from N9.47 billion in the first half of 2022.

BUA Cement did not record tax payments for the first half of 2023 while N513.46 million was recorded in the first half of 2022.

Read also: Snap shot of cement makers’ Q1 performance

Earnings per share

Dangote Cement’s earnings per share amounted to N10.39 per share in the first half of 2023 from N10.10 per share in the first quarter of 2022.

BUA Cement’s earnings per share stood at N1.88 per share from N1.81 per share in the comparable periods.

Lafarge Africa’s earnings per share stood at N2.20 per share in the first half of 2023 from N2.32 per share in the first quarter of 2022.