The Cement Company of Northern Nigeria (CCNN) said it has recorded gross profit of N7, 605, 209, 592 in the 2017 financial year despite numerous challenges.
Executive Chairman/CEO of BUA Group, Abdul Samad Rabiu who made this known in Sokoto State at the company’s 39th annual general meeting identified shortage of energy as the primary challenge.
He said the company had revenue of N19, 588,260,886 for the 2017 financial year as against N14, 087,553,499 recorded in 2016 though cement demand in Nigeria came down to almost 20 percent compared to 2016.
Rabiu who described the revenue increase as the highest in the company’s history said improved Cement prices and efficient cost management were factors that led to the achievement. Rabiu then assured stakeholders of sustenance in the figure and dominance in the home market and also penetration into some key strategic markets.
“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,” Rabiu stated.
“Cement demand in Nigeria in 2017 came down by almost 20 percent 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.”
“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” he said.
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, 030,222,016 in 2016 to N24, 648,675,929 for the financial year ended.
