Cement Company of Northern Nigeria (CCNN) Plc has announced a net profit of N3.2 billion for the year ended December 31, 2017. This was contained in the audited results of the company released at the Nigerian Stock Exchange (NSE) yesterday, showed that profit after tax grew faster by 157 per cent from N1.254 billion in 2016 to N3.223 billion in 2017.
Based on the performance, the directors recommended a total dividend of N1.571 billion, translating to N1.25 per share. According to the results, CCNN recorded revenue of N19.588 billion, up 39 per cent from N14.088 billion posted in 2016. Cost of sales rose by 18 per cent to N11.983 billion, from N10.151 billion, while gross profit improved by 93 per cent to N7.6 billion, up from N3.936 billion in 2016.
Profit before tax jumped by 141 per cent from N1.741 billion to N4.203 billion, while earnings per share went up to N2.57 from N1.00. Finance income depreciated to N108.2 billion as against N132.72 billion in 2016, while finance expenses also decline to N131.9 billion from N198.7 billion in 2016.
The chairman of the company, Dr. Abdulsamad Rabiu recently stated that CCNN was able to continue on the path of profitability as a result of strict cost-efficiency regime which the management of the company was able to maintain, adding that this was done to promote strong value for the shareholders of the company.
He said, “Performance of the company was a reflection of the board’s concerted efforts to ensure that CCNN continued to strive with better performance and enhanced shareholder value, despite the massive challenges in the operating environment.
“CCNN is still dominant in its home market in Sokoto, Kebbi and Zamfara due to the quality of its cement and customer loyalty. This has contributed to the continued survival of the company in the market despite the numerous challenges,” he said.
Rabiu added that the board was optimistic that the cement industry in Nigeria has an excellent long-term outlook owing to the huge infrastructure requirements in the country as well as the neighbouring countries in the West African sub-region.