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  • CCNN: Bigger, more profitable

    Cement Company of Northern Nigeria (CCNN) Plc triples its top-line and bottom-line as the gains of recent strategic initiatives and business combination strengthen the outlook of the company. In this report, Capital Market Editor, Taofik Salako, looks at the underlying performance and outlook for the cement producer

    Cement Company of Northern Nigeria (CCNN) Plc is one of the highpoints of this earnings season. With three-digit growth in all key performance indices, CCNN recorded well-rounded performance in the first half of 2019. The six-month report for the period ended June 30, 2019 showed that total turnover rose by 166.14 per cent to N32.15 billion in first half 2019 as against N12.08 billion in comparable period of 2018. Gross profit grew by 163.07 per cent from N5.47 billion to N14.39 billion. Profit before tax jumped by 165.3 per cent from N3.66 billion to N9.71 billion. After taxes, net profit leapt by 180 per cent from N2.60 billion in first half 2018 to N7.28 billion in first half 2019. Underlying performance ratios showed a generally stable outlook. Gross profit margin stood at 44.76 per cent. Pre-tax profit margin was steadied at 30.21 per cent while net profit margin improved to 22.64 per cent.

    The balance sheet also showed a stronger and better-positioned company with reduced leverage and increased working capital. Total assets rose to N356.75 billion in June 2019 compared with N347.75 billion recorded for the year ended December 31, 2018. Total equity increased from N333.49 billion in December 2018 to N340.77 billion in June 2019. Current assets had risen from N17.28 billion to N23.13 billion while non-current assets had increased from N330.46 billion to N333.6 billion.

    The first half 2019 performance places CCNN in good stead to sustain its impressive year-on-year growth and cement its leading position as the fastest growing  cement company. The company had increased total dividend payout for the 2018 business year by 235 per cent to N5.26 billion after turnover and net profit jumped by 62 per cent and 77 per cent respectively. In the audited report and accounts for the year ended December 31, 2018, CCNN’s turnover rose to N31.7 billion in 2018 as against N19.58 billion in 2017. The top-line growth was due largely to increased domestic sales and exports.  CCNN produced 0.76 million metric tonnes of cement and sold over 0.74 million metric tonnes, an increase of about 59 per cent. Sale of cement in Nigeria rose by 49 per cent to N28.9 billion while exports jumped from N0.2 billion in 2017 to N2.9 billion in 2018. Earnings before interest and taxes rose by 86 per cent to N7.9 billion profit before tax increased by 81 per cent to N7.6 billion. Profit after tax rose to N5.86 billion in 2018 as against N2.91 billion in 2017.

    New Growth Momentum

    CCNN had in December 2018 strengthened its competitiveness and laid out new strategic growth plan with the business combination with Kalambaina Cement Company, a larger and newer Sokoto-based cement company. With CCNN’s pre-merger 500,000 metric tonnes per annum capacity and Kalambaina Cement Company-‘s 1.5 million metric tonnes per annum capacity, the emergent CCNN boasts of 2.0 million metric tonnes capacity, strengthening CCNN’s dominance as North-West Nigeria’s largest cement company and giving the company the volume for aggressive expansion in Nigeria and beyond. Kalambaina Cement plant uses primary fuels such as coal, heavy oils and AGO and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion. These competitive advantages are visible in the emerging results. CCNN and Kalambaina Cement Company had related core investor. Damnaz Cement Company Limited held 50.7 per cent majority equity stake in CCNN. Alhaji Abdul Samad Rabiu, who chairs the board of CCNN, held the majority equity stake in Damnaz while his company-BUA International Limited held the 100% stake in Kalambaina. The business combination not only made CCNN a stronger competition in the cement market, it pivoted its ranking at the Nigerian stock market, scaling up to become Nigeria’s 12th largest quoted company.

    Most analysts believe the business combination would further boost efficiency, productivity, output and better returns for CCNN.

    “The opportunities within CCNN’s key markets and its export potential are almost endless. Situated just about 100km from Niger Republic and as the nearest cement plant to key markets in Northern Nigeria, the enlarged CCNN is now poised to compete effectively and serve those markets better at a lower cost with more energy efficiency through our use of coal,” Rabiu said. Rabiu also hinted of plan to increase the company’s production capacity, while pointing out that the merger has led to introduction of new technology, reduction in operational costs and increase in the number of transport fleet.

    “The company recorded its highest domestic exports sale during the year (2018). This was facilitated by the additional output from the enlarged entity. In 2019, we hope to have the full combined capacity of the two entities. With the new capacity, CCNN is now the dominant player in its home market of North West Africa,” Rabiu said.

    The Founder and Chief Executive Officer of BUA Group said CCNN is taking advantage of its proximity to the neighbouring West African borders, which has opened a new window for the export operations and revenue generation in foreign exchange.

    Managing Director, Cement Company of Northern Nigeria (CCNN) Plc, Engineer Yusuf Binji said the company will sustain its positive growth trajectory as it is now in better and more competitive position to drive growth in its home market and exports.

    He said the more benefits of the 2018 business combination and ongoing strategic initiatives will become more pronounced in the period ahead as the company continues to growth with economies of scale, enhanced operations and administrative efficiencies.

    Analysts’ opinions

    Most analysts are positive about CCNN’s outlook. On the back of the first half 2019 performance, analysts at Cordros Securities flagged CCNN as a high-return stock with potential total return of 124 per cent over the next 12 months. Analysts noted that CCNN’s half-year earnings per share of 55 kobo is tracking well ahead of Bloomberg consensus full-year 2019 estimate of 86 kobo and Cordros’ estimate of N1.01. Analysts described CCNN’s top-line performance as impressive.

    According to analysts, CCNN is an attractive buy and its three-digit operational growth could translate into similar three-digit returns. Analysts pointed out that CCNN is trading at significantly below its peers in the Middle East and Africa, making it a more attractive stock.

    In its review of the Nigerian cement industry outlook, Cordros noted that irrespective of the constraints in the overall economy, there are still strong triggers for cement producers in Nigeria, especially in the light of government’s aggressive infrastructure development and growing private sector demand.

    According to analysts, although there could be competition for cement demand growth from infrastructure development in Nigeria and neigbouring countries, CCNN tops scale of preference because of its proximity to fast growing markets.

    “From the perspective of users, CCNN’s new cement plant in Sokoto is the best cement plant in Nigeria, due to the high level of technological configurations which makes end products cure and dry faster. Beyond that, we are encouraged by the company’s potential for margin expansion over the next few years – which should drive earnings per share growth – as the company is able to optimise energy costs, increase capacity utilisation rate, and slightly increase prices,” Cordros stated.

    Analysts at Investment One Financial Services Limited also remained positive about the outlook for CCNN, citing the synergies from its recent business combination and market advantage. Analysts said the top-line growth in first half 2019 suggested the company may be recording success in its plan to expand market share to other northern regions of Nigeria, as the North-west region may not have the capacity to absorb new volumes.

    According to analysts, while the third quarter may be a tepid quarter due to the rainy season, which slows construction, the company’s top-line performance may see support from potential increase in Federal Government capital expenditure spending following the appointment of executive cabinet and implementation of 2019 budget.

    While noting the decline in margin due to increased costs, Investment One said CCNN has potential to deliver improved sales and profitability. “In addition, the cement producer should continue to reap benefits of its merger with Kalambaina Cement if its plans to enter new market and expand market share continues to be successful. We also draw attention to a potential drop in cost in the medium term as its new factory is designed to run on multiple energy sources (such as gas and coal); this is unlike its old factory which is run predominantly with Low Pour Fuel oil (LPFO) which is the most expensive of all energy sources. If a switch in energy sources is effectively implemented, we see potential improvements in margin performance of CCNN as we have previously seen in other players operating in the sector,” Investment One stated.

    With almost a consensus on the positive outlook for CCNN, the company appears to be on the right track to further consolidate its impressive growths over the years and increase returns to shareholders.

  • CCNN posts N5.7b net profit

    Cement Company of Northern Nigeria (CCNN) Plc grew its net profit by 77 per cent to N5.7 billion in 2018.

    In its first report since the merger with Kalambaina Cement Company, CCNN’ turnover rose by 62 per cent to N31.7 billion. Earnings before interest, taxes, depreciation and amortization ( EBITDA) rose by 86 per cent to N7.9 billion.

    The top-line growth was due largely to increased domestic sales and exports. Overall, CCNN produced 0.76 million metric tonnes of cement and sold over 0.74 million metric tonnes, an increase of about 59 per cent. Sale of cement in Nigeria rose by 49 per cent to N28.9 billion while exports jumped from N0.2 billion in 2017 to N2.9 billion in 2018. Earnings before interest and taxes rose by 86 per cent to N7.9 billion profit before tax increased by 81 per cent to N7.6 billion.

    While the merger was completed in fourth quarter of 2018, the management elected to report the performance of the merged entities as if the merger took place at the start of the year. Consequently, earnings per share shrunk by 83 per cent to 44 kobo as shares outstanding jumped over nine times to 13.1 billion units.

    The board of directors of the company has recommended payment of a dividend per share of 40 kobo, representing some 92 per cent of the net earnings per share.

    The management of the company stated that it plans to extend product distribution to the northeast and central regions of Nigeria, as it does not expect the northwest of the country to absorb the company’s current, larger 2.0 metric tonnes capacity.

    There are however predictions that CCNN will record significant upside to its net income in 2019 and beyond upon approval of pioneer status by the Nigerian Investment Promotion Commission (NIPC) and a moderate chance of CCNN receiving approval on the new line.

    Heidelberg Cement Group had in 2008 divested its majority equity stake in CCNN to Damnaz Cement Company Limited, a Nigerian company. In 2010, BUA International Limited acquired Damnaz Cement Company Limited and became indirectly the majority shareholder in CCNN and its technical partner. CCNN currently operates as a subsidiary of BUA International Limited.

  • CCNN posts N5.7b net profit

    Cement Company of Northern Nigeria (CCNN) Plc grew its net profit by 77 per cent to N5.7 billion in 2018.

    In its first report since the merger with Kalambaina Cement Company, CCNN’ turnover rose by 62 per cent to N31.7 billion. Earnings before interest, taxes, depreciation and amortization ( EBITDA) rose by 86 per cent to N7.9 billion.

    The top-line growth was due largely to increased domestic sales and exports. Overall, CCNN produced 0.76 million metric tonnes of cement and sold over 0.74 million metric tonnes, an increase of about 59 per cent. Sale of cement in Nigeria rose by 49 per cent to N28.9 billion while exports jumped from N0.2 billion in 2017 to N2.9 billion in 2018. Earnings before interest and taxes rose by 86 per cent to N7.9 billion profit before tax increased by 81 per cent to N7.6 billion.

    While the merger was completed in fourth quarter of 2018, the management elected to report the performance of the merged entities as if the merger took place at the start of the year. Consequently, earnings per share shrunk by 83 per cent to 44 kobo as shares outstanding jumped over nine times to 13.1 billion units.

    The board of directors of the company has recommended payment of a dividend per share of 40 kobo, representing some 92 per cent of the net earnings per share.

    The management of the company stated that it plans to extend product distribution to the northeast and central regions of Nigeria, as it does not expect the northwest of the country to absorb the company’s current, larger 2.0 metric tonnes capacity.

    There are however predictions that CCNN will record significant upside to its net income in 2019 and beyond upon approval of pioneer status by the Nigerian Investment Promotion Commission (NIPC) and a moderate chance of CCNN receiving approval on the new line.

    Heidelberg Cement Group had in 2008 divested its majority equity stake in CCNN to Damnaz Cement Company Limited, a Nigerian company. In 2010, BUA International Limited acquired Damnaz Cement Company Limited and became indirectly the majority shareholder in CCNN and its technical partner. CCNN currently operates as a subsidiary of BUA International Limited.

  • CCNN poised for better returns, says Rabiu

    Chairman, Cement Company of Northern Nigeria (CCNN) Plc, Alhaji Abdul Samad Rabiu, has said the recent business combination between CCNN and Kalambaina Cement Company has positioned CCNN to deliver improved performance in the years ahead.

    Rabiu, founder and Chief Executive Officer of BUA Group, was honoured with beating of the closing gong yesterday at the Nigerian Stock Exchange (NSE) in commemoration of the successful completion of the CCNN-Kalambaina Cement merger. The listing of the shares of the expanded CCNN had lifted the company to 12th most capitalised company on the Exchange.

    Rabiu said the merger would serve to further boost efficiency, productivity, output and better returns for CCNN.

    “The opportunities within CCNN’s key markets and its export potential are almost endless. Situated just about 100km from Niger Republic and as the nearest cement plant to key markets in Northern Nigeria, the enlarged CCNN is now poised to compete effectively and serve those markets better at a lower cost with more energy efficiency through our use of coal,” Rabiu said.

    He said the company expects to remain the number one player in the northern regional market for the considerable future while building capacity for future demand.

    CCNN had listed 11.887 billion ordinary shares of 50 kobo each on the Daily Official List of the Exchange, raising the cement company’s total issued and fully paid up shares from 1.257 billion ordinary shares of 50 kobo each to 13.143 billion ordinary shares of 50 kobo each.

    CCNN and Kalambaina Cement Company- a wholly-owned subsidiary of BUA Cement Company Limited had merged to strengthen CCNN as North-West Nigeria’s largest cement company.  Both CCNN and Kalambaina Cement are based in Sokoto.

    CCNN has a 500,000 metric tonnes per annum cement plant while Kalambaina Cement has a 1.5 million metric tonnes per annum plant, making a combined capacity of 2.0 million metric tonnes per annum. Kalambaina Cement plant uses alternative fuel such as coal, heavy oils and gas and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.

    CCNN and Kalambaina Cement Company have related core investor. Damnaz Cement Company Limited holds 50.7 per cent majority equity stake in CCNN. Alhaji Abdul Samad Rabiu holds the majority equity stake in Damnaz while his company-BUA International Limited holds the remaining minority stake in Damnaz.

  • CCNN doubles net profit to N4b in third quarter

    Cement Company of Northern Nigeria (CCNN) Plc has doubled its bottom-line in the third quarter. The Sokoto-based company rode on the back of strong growth in sales and improved cost management to increase returns to shareholders.

    Key extracts from the nine-month report for the period ended September 30, 2018, showed that the cement firm grew its profit before tax from N2.86 billion in third quarter 2017 to N5.73 billion in third quarter 2018. After taxes, net profit also doubled from N2.04 billion to N4.10 billion. Earnings per share thus doubled from N1.62 to N3.19 per share.

    Total turnover had grown from N13.63 billion in third quarter 2017 to N19.57 billion in third quarter 2018. Cost of sale increased from N8.40 billion to N10.94 billion. With these, gross profit had risen from N5.23 billion in 2017 to N8.63 billion in 2018.

    The third quarter results triggered a rally in the share price of the cement company on Monday. CCNN’s share price rose by 9.24 per cent to N17.15 per share, almost on the 10 per cent daily ceiling for price change at the Nigerian Stock Exchange (NSE).

    The CCNN had distributed N1.57 billion to shareholders as cash dividend for the 2017 business year as its net profit grew by 157 per cent. Shareholders received a dividend per share of N1.25 for the 2017 business year. The firm did not pay dividend for the 2016 business year.

    Key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 had shown significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent. Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    CCNN and Kalambaina Cement Company- a wholly-owned subsidiary of BUA Cement Company Limited, recently concluded a business combination that strengthened the CCNN as Northwest Nigeria’s largest cement firm.  Both the CCNN and Kalambaina Cement are based in Sokoto. The CCNN has a 500,000 metric tonnes per annum cement plant, while Kalambaina Cement has a 1.5 million metric tonnes per annum plant, making a combined capacity of 2.0 million metric tonnes per annum. Kalambaina Cement plant uses alternative fuel such as coal, heavy oils and gas and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.

    The CCNN and Kalambaina Cement Company have related core investor. Damnaz Cement Company Limited holds 50.7 per cent majority equity stake in the CCNN. Alhaji Abdul Samad Rabiu holds the majority equity stake in Damnaz, while his company-BUA International Limited, holds the remaining minority stake in Damnaz.

    The CCNN Managing Director,  Yusuf Binji, an engineer, said the merger would position the CCNN for better competitiveness within its home market and also enable it to utilise the more modern plant and equipment of the Kalambaina Cement to boost its market penetration and export potential.

    According to him, the merger provides a compelling opportunity to capture significant synergies and create value for the benefit of shareholders of both firms in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies, which are expected to accrue.

  • Shareholders approve BUA’s Kalambaina, CCNN merger

    Shareholders of Cement Company of Northern Nigeria (CCNN:NL) and BUA Group’s Kalambaina Cement Company at the weekend approved the merger of the two firms, pending final regulatory approval.

    The approval was sequel to two separate court-ordered Extra-Ordinary General Meetings in Sokoto, Sokoto State.

    In what is said to be the biggest corporate merger of the year in the country, the shareholders’ approval would see CCNN merge with one of BUA Group’s cement companies, Kalambaina Cement Company and solidify BUA Group’s drive to be the country’s second largest producer of cement by volume next year.

    With this approval, the new CCNN will have a total installed capacity of  two million metric tons (Mmt) and is set to be the dominant cement player in the key regional markets in Northern Nigeria with almost unfettered access to key export markets in West Africa.

    Speaking on the development, Chairman, CCNN and Founder, BUA Group, Abdul Samad Rabiu,expressed gratitude to the shareholders.

    He said: “We thank shareholders of both companies who voted overwhelmingly to approve this merger. This deal signposts shareholder confidence in the value proposition of the CCNN-Kalambaina merger and we are certain that the new entity can compete effectively in the cement industry in Nigeria whilst maintaining its market dominance in this region.

    “The new, enlarged CCNN is a stronger platform to capture significant synergies and create value for the benefit of the shareholders in the form of stronger competitive position, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.

    “Our commitment towards the Nigerian economy remains strong and this new entity further deepens the capital market and is a pointer to the continued resurgence of the economy. We remain committed to delivering exceptional value to stakeholders at all times. Innovation, efficiency and best-in-class technology will continue to be the key drivers of our cement business.”

     

  • CCNN to merge with BUA Cement

    Cement Company of Northern Nigeria (CCNN) Plc and Kalambaina Cement Company- a wholly-owned subsidiary of BUA Cement Company Limited have entered into agreement to merge their businesses in a business combination that will produce North-West Nigeria’s largest cement company.

    Both CCNN and Kalambaina Cement are based in Sokoto. CCNN has a 500,000 metric tonnes per annum cement plant while Kalambaina Cement has a 1.5 million metric tonnes per annum plant, making a combined capacity of 2.0 million metric tonnes per annum.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, directors of CCNN and Kalambaina Cement said they have reached preliminary agreement on the merger, subject to approval by shareholders and capital market regulators. Damnaz Cement Company, a subsidiary of BUA International Limited is a majority shareholder in CCNN.

    Managing Director, Cement Company of Northern Nigeria (CCNN) Plc, Alhaji Ibrahim Aminu said that the proposed merger will position CCNN for better competitiveness within its home market and also enable it utilize the more modern plant and equipment of the Kalambaina Cement to boost its market penetration and export potential.

    According to him, the proposed merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.

    “Over the years, we have always delivered exceptional value to all stakeholders and this proposed merger is in continuation of that. We have consistently outperformed the industry in key metrics such as capacity utilization but growth has been hampered over the years due to limited expansion and lack of alternative fuel sources,” Aminu said.

    He noted that Kalambaina Cement plant that uses alternative fuel such as coal, heavy oils and gas would help to solve the power problem with limited downtime and further opportunities for growth and expansion.

    According to proposal, shares of CCNN will be issued and allotted to all shareholders of Kalambaina Cement in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30-day volume weighted average closing price by June 22, 2018 of N25.99 per share.

    A total of 19,811,372 ordinary shares of CCNN will be issued in exchange for 100,000 shares of Kalambaina Cement.

    The business combination is also expected to put BUA Cement businesses in a stronger position to compete effectively and also explore export opportunities in neighboring countries.

    CCNN has shown strong performance in recent period. Key extracts of the interim report and accounts of CCNN for the three-month period ended March 31, 2018showed that sales rose by 24 per cent while profit before and after tax doubled by 119.7 per cent and 110.7 per cent respectively. Total turnover rose from N4.35 billion in first quarter 2017 to N5.39 billion in first quarter 2018. Gross profit grew by 39.7 per cent to N2.26 billion in first quarter 2018 compared with N1.63 billion in corresponding period of 2017. Profit before tax also doubled from N684.98 million to N1.50 billion while profit after tax jumped to N1.08 billion in first quarter 2018 as against N513.74 million in first quarter 2017. Earnings per share thus increased from 41 kobo in first quarter 2017 to 86 kobo in first quarter 2018.

    The first quarter performance placed CCNN on course to consolidate its impressive performance in recent period. The board of directors of the cement company recently announced that it has recommended payment N1.57 billion to shareholders as cash dividend for the 2017 business year  after full-year profit jumped by 157 per cent. A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N1.25 for the 2017 business year. CCNN did not pay dividend for the 2016 business year.

    Also, key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 showed significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent.

    Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    The balance sheet of the company also improved as total assets grew by 23 per cent from N20.03 billion in 2016 to N24.65 billion in 2017. Shareholders’ fund also increased from N11.49 billion to N14.41 billion, representing an increase of 25 per cent.

    The underlying fundamentals of the company also improved considerably during the year, showing that the positive overall performance was driven by improvement in the operations of the company. Gross profit margin improved from 28 per cent in 2016 to 39 per cent in 2017. Net profit margin also doubled from 9.0 per cent to 16 per cent. Return on capital employed jumped from 11 per cent in 2016 to 22 per cent in 2017.

     

     

  • CCNN doubles first quarter profit

    Cement Company of Northern Nigeria (CCNN) Plc started this year on a strong footing as profit doubled on the back of improving sales and margins.

    Key extracts of the interim report and accounts of CCNN for the three-month period ended March 31, 2018 released at the Nigerian Stock Exchange (NSE) showed that sales rose by 24 per cent while profit before and after tax doubled by 119.7 per cent and 110.7 per cent.

    Total turnover rose from N4.35 billion in first quarter 2017 to N5.39 billion in first quarter 2018. Gross profit grew by 39.7 per cent to N2.26 billion in first quarter 2018 compared with N1.63 billion in corresponding period of 2017. Profit before tax also doubled from N684.98 million to N1.50 billion while profit after tax jumped to N1.08 billion in first quarter 2018 as against N513.74 million in first quarter 2017. Earnings per share thus increased from 41 kobo in first quarter 2017 to 86 kobo in first quarter 2018.

    The first quarter performance places CCNN on course to consolidate its impressive performance in recent period. The board of directors of the cement company recently announced that it has recommended payment N1.57 billion to shareholders as cash dividend for the 2017 business year  after full-year profit jumped by 157 per cent.

    A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N1.25 for the 2017 business year. CCNN did not pay dividend for the 2016 business year.

    Key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 showed significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent.

    Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    The balance sheet of the company also improved as total assets grew by 23 per cent from N20.03 billion in 2016 to N24.65 billion in 2017. Shareholders’ fund also increased from N11.49 billion to N14.41 billion, representing an increase of 25 per cent.

     

     

    The underlying fundamentals of the company also improved considerably during the year, showing that the positive overall performance was driven by improvement in the operations of the company. Gross profit margin improved from 28 per cent in 2016 to 39 per cent in 2017. Net profit margin also doubled from 9.0 per cent to 16 per cent. Return on capital employed jumped from 11 per cent in 2016 to 22 per cent in 2017.

  • CCNN to pay N1.57b dividend as net profit rises by 157%

    The board of directors of Cement Company of Northern Nigeria (CCNN) Plc has earmarked N1.57 billion for distribution to shareholders as cash dividend for the 2017 business year as the cement manufacturing company grew its net profit by 157 per cent.

    A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N1.25 for the 2017 business year. CCNN did not pay dividend for the 2016 business year.

    Key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 showed significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent.

    Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    The balance sheet of the company also improved as total assets grew by 23 per cent from N20.03 billion in 2016 to N24.65 billion in 2017. Shareholders’ fund also increased from N11.49 billion to N14.41 billion, representing an increase of 25 per cent.

    The underlying fundamentals of the company also improved considerably during the year, showing that the positive overall performance was driven by improvement in the operations of the company. Gross profit margin improved from 28 per cent in 2016 to 39 per cent in 2017. Net profit margin also doubled from 9.0 per cent to 16 per cent. Return on capital employed jumped from 11 per cent in 2016 to 22 per cent in 2017.

     

  • CCNN Sokoto donates uniforms to 290 primary school pupils

    CCNN Sokoto donates uniforms to 290 primary school pupils

    The Cement Company of Northern Nigeria ( CCNN ) on Monday distributed 580 sets of school uniforms to 290 pupils of Sabongarin-Alu primary school in Wamakko Local Government Area of Sokoto State.

    The company, trading under brand name of Sokoto Cement, built the school, which is close to the company, for the community as part of its corporate social responsibility.

    Presenting the items, the company’s Corporate Affairs Manager, Alhaji Sada Suleiman, said the gesture was part of the company’s support package aimed at complementing the efforts of Sokoto State Government to develop education.

    Sada said the company was also assisting the state through portable water supply, electrification, rural roads, health-care, women and youth empowerment.

    He said the company had also awarded scholarships to 50 indigent students in tertiary institutions, adding that more support programmes to be executed by the company were on progress.

    “The uniforms and educational materials are mainly for primary schools, basic and secondary education for enrolment sustenance,” Sada said.

    Read also: CCNN grows net profit by 182% to N2.04b in Q3

    He said 150 girls and 140 boys had benefitted from the gesture, noting that each pupil would get two sets of uniform.

    The Manager promised that the gesture would continue and pledged to also partner with the state’s Ministry of Education to identify areas of need for more assistance.

    The Special Adviser to Gov. Aminu Tambuwal on Corporate and Social Responsibility, Alhaji Faruk Suwidi, described the support as strategic because of the importance of instructional materials to students.

    Suwidi said the gesture was the first of its kind from any corporate body in the state, noting that it would significantly reduce the burden on parents.

    He therefore, urged parents and guardians to reciprocate the gesture by ensuring that their children and wards attended school regularly.

    He further appealed to other corporate organizations and wealthy individuals to take a cue from the company.

    Alhaji Bello Buba and Alhaji Abubakar Ahmadu, Chairman and District Head of Wamakko LGA respectively, expressed the community’s appreciation and thanked the company for impacting so much on the community.

    The News Agency of Nigeria (NAN) reports that highlight of the event was songs presentation by pupils.

    NAN