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- Nigeria's cement assemblage posted a beardown commencement to 2025, with full gross reaching N1.53 trillion successful Q1, driven by a stronger naira and precocious section demand
- Leading companies specified arsenic Dangote Cement, BUA Cement, and Lafarge Africa reported awesome year-on-year net growth
- Despite challenges similar precocious vigor prices and determination governmental instability, the cement manufacture benefited from forex stableness and improved operational efficiency
Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.
Nigeria's cement assemblage has started 2025 with a beardown performance, posting a full gross of N1.53 trillion successful the archetypal 4th (Q1).
This surge was driven by a stronger naira, robust section demand, and palmy cost-reduction measures.
The results correspond a crisp betterment from the challenges faced successful 2024, mostly owed to currency volatility.
Source: UGC
The Central Bank of Nigeria (CBN)’s caller overseas speech marketplace reforms helped stabilise the speech complaint successful Q1 2025, with the naira averaging N1,521.78/$1, compared to N1,621.71/$1 successful the erstwhile quarter.
This betterment alleviated import-related expenses and minimised overseas speech losses for key manufacturers such arsenic BUA Cement, Dangote Cement, and Lafarge Africa, each of which reported notable year-on-year net growth.
Recall that Legit.ng earlier reported that the 3 cement producers which are listed connected the Nigerian Exchange Limited (NGX) made a combined revenue of N677.34 cardinal successful 2024.
Dangote Cement
Dangote Cement Plc reported an awesome 85.7% year-on-year increase successful nett after taxation (PAT), reaching N209.25 billion, with gross rising by 21.7% to N994.66 billion.
The institution holds the presumption arsenic the astir valuable publically listed steadfast successful Nigeria, with its marketplace capitalisation rising to N8.16 trillion arsenic of November 2024.
Although full volumes crossed the radical fell by 6.7%, a 30.5% summation successful the mean terms per tonne helped offset this decline.
Nigerian operations led the growth, showing a 53.7% gross increase, portion the Pan-African show weakened owed to post-election disruptions successful Senegal and liquidity issues successful Ethiopia.
Despite these challenges, overseas speech losses dropped by 72.6%, and the EBITDA borderline improved to 46.2%, supported by substance substitution and logistics outgo savings.
BUA Cement
BUA Cement Plc achieved singular results, with net per stock (EPS) soaring by 351.4% to N2.40, driven by an 80.5% gross summation to N290.82 cardinal and a important simplification successful overseas speech losses, which dropped by 91.7% to N836.81 million.
The company’s nett earlier taxation (PBT) skyrocketed by 368.6% year-on-year, reaching N99.74 billion, portion nett aft taxation (PAT) besides surged by 351.4% year-on-year to N81.12 billion, aft accounting for a taxation disbursal of N18.62 billion.
Lafarge cement
Lafarge Africa Plc saw an exceptional net rebound, with net per stock (EPS) soaring by 836.7% to N3.02, and nett aft taxation (PAT) reaching N48.64 billion, fueled by beardown cement request and a important simplification successful overseas speech losses.
Revenue grew by 80.3% to N248.35 billion, supported by coagulated income crossed each merchandise categories.
Despite precocious input costs, the company's EBITDA borderline improved to 32.0%, demonstrating enhanced operational efficiency.
As a result, the combined gross of the trio reached N1.533 trillion, compared to N1.17 trillion successful the aforesaid play of 2024, marking an summation of 182.5%.
In effect to the development, analysts pointed retired that the simplification successful overseas speech losses highlights the comparative stableness of the naira and the little overseas currency indebtedness vulnerability of the companies.
Source: Getty Images
Manufacturers are progressively focusing connected terms optimisation, alternate energy sources, and logistics ratio to safeguard margins and grow marketplace share.
However, challenges remain, arsenic fluctuating vigor prices, rising involvement rates, and governmental uncertainties successful the portion could jeopardise the sustainability of these gains, peculiarly successful Pan-African markets.
High cement demand, precocious revenue
Speaking connected the maturation successful cement income successful Nigeria contempt the skyrocketing prices, Uju Nwankwo, caput of probe astatine Folix Investment, said that it reflects the precocious request for infrastructure development.
She said:
"Despite the important emergence successful cement prices, it's awesome to spot the dependable maturation successful cement income successful Nigeria. This suggests that the request for operation and infrastructure improvement remains high, driven by some backstage and nationalist assemblage projects. The resilience of the market, adjacent with fiscal challenges, highlights the captious relation of cement successful Nigeria’s ongoing urbanization and development."She added that the inclination besides reflects the determination of individuals and businesses to proceed building, careless of accrued costs, and prioritising improvement implicit short-term economical pressures.
Katsina billionaire begins cement production
In related news, Legit.ng reported that Katsina billionaire Dahiru Mangal has launched a new cement works in Moba, Kogi State, with an concern of $1.5 billion.
Originally projected to outgo $600 million, the terms tag accrued owed to the depreciation of the naira.
The works is expected to nutrient astir 200 cement trucks per day, and manufacture experts foretell it volition make galore nonstop and indirect occupation opportunities.
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Source: Legit.ng
