The Nation Newspaper

Tag: CCNN

  • CCNN grows net profit by 182% to N2.04b in Q3

    Cement Company of Northern Nigeria (CCNN) Plc recorded impressive performance in the third quarter as increased sales and improved operating efficiency led to three-digit growth in profitability.

    Key extracts of the interim report and accounts for the nine-month period ended September 30, 2017 released at the weekend, showed that CCNN grew sales by 47.67 per cent. Gross profit doubled by 110.9 per cent while pre and post tax profits jumped by 169.8 per cent and 182.55 per cent respectively.

    The report indicated that turnover rose to N13.63 billion by September 2017 as against N9.23 billion recorded by September, 2016. Gross profit also increased from N2.48 billion to N5.23 billion. Profit before tax doubled from N1.06 billion in 2016 to N2.86 billion in 2016. After taxes, net profit leapt to N2.04 billion in 2017 compared with N721.58 million in comparable period of 2016. With these, earnings per share nearly tripled to N1.62 by September 2017 compared with 57 kobo recorded in corresponding period of 2016.

    The third quarter performance of the Sokoto-based cement manufacturer further consolidated its impressive outlook, putting it ahead of other cement manufacturers.

    CCNN had in the first half ended June 30, 2017 grew its top-line by 31.3 per cent and further optimised this into 42 per cent and 56 per cent growth in pre and post tax profits respectively.

    The first-half report had shown that CCNN’s turnover rose from N6.48 billion in first half 2016 to N8.51 billion in first half 2017. Gross profit jumped by 60.7 per cent from N1.88 billion to N3.03 billion. Profit before tax leapt from N968.57 million in first half 2016 to N1.37 billion in first half 2017. Profit after tax also rose from N658.63 million in first half 2016 to N1.03 billion in first half 2017. Earnings per share increased to 82 kobo in first half 2017 as against 52 kobo in comparable period of 2016.

    CCNN had embarked on a $300 million expansion project to modernize and increase the capacity of its 30-year old cement plant. The expansion project would increase the company’s installed capacity by 200 per cent to 1.5 million metric tonnes. The take-off fund for the expansion was provided by BUA International Limited, which holds 50.72 per cent equity stake in CCNN through its wholly-owned subsidiary-Damnaz Cement Company.

    The expansion was part of the ongoing modernization and cost optimization programme aimed at reducing average cost and enhancing productive capacity with a view to ensuring that CCNN remained competitive in the cement industry.

    There are indications that the company may subsequently float supplementary equity issue to refinance its capital structure and provide long-term funds necessary for such long-term expansion project.

    Incorporated in August 1962, CCNN commenced business operations in 1967. A wholly-owned Nigerian company with more than 35,000 shareholders, CCNN’s shares were listed on the Nigerian Stock Exchange (NSE) in October 1993.

    BUA International Limited-through its wholly-owned subsidiary-Damnaz Cement Company, holds 50.72 per cent majority equity stake. Nasdal Bap Nigeria Limited holds the second largest equity stake of 11.48 per cent.

  • CCNN grows first half net profit by 56%

    Sokoto-based cement manufacturer, Cement Company of Northern Nigeria (CCNN) Plc witnessed a major improvement in its overall performance in the first half with increased sales and profitability.

    The interim report and accounts for the six-month period ended June 30, 2016 showed that CCNN grew its top-line by 31.3 per cent and further optimised this into 42 per cent and 56 per cent growth in pre and post tax profits respectively.

    The report showed that CCNN’s turnover rose from N6.48 billion in first half 2016 to N8.51 billion in first half 2017. Gross profit jumped by 60.7 per cent from N1.88 billion to N3.03 billion. Profit before tax leapt from N968.57 million in first half 2016 to N1.37 billion in first half 2017. Profit after tax also rose from N658.63 million in first half 2016 to N1.03 billion in first half 2017. Earnings per share increased to 82 kobo in first half 2017 as against 52 kobo in comparable period of 2016.

    CCNN had embarked on a $300 million expansion project to modernise and increase the capacity of its 30-year old cement plant. The expansion project would increase the company’s installed capacity by 200 per cent to 1.5 million metric tonnes. The take-off fund for the expansion was provided by BUA International Limited, which holds 50.72 per cent equity stake in CCNN through its wholly-owned subsidiary-Damnaz Cement Company.

  • Price of cement may go up if… – Manufacturers

    Price of cement may go up if… – Manufacturers

    Cement manufacturers have warned that if the Naira is further devalued, the price of cement will be increased further.
    Cement manufacturers need a substantial amount of forex to pay expatriates, buy diesel, fuel, spare parts and mining machinery. It has also been disclosed that it is easier to import gypsum than to use local gypsum because of the poor quality and high price of local gypsum.

    Addressing shareholders at the 37th Annual General Meeting (AGM) of the Cement Company of Northern Nigeria (CCNN) in Abuja yesterday, the chairman of the company Alhaji Abdulsamad Rabiu said “times are tough and difficult, and the availability of forex is a big problem. If the Naira devalues further, the cost of anything that is imported will go up. Hanging in there to remain in business.”

    Defending the recent increase in the price of cement to N2,000, Abdulsamad Rabiu said CCNN will continue with production and make a little bit of money even if it is not much, to keep running. He told shareholders that a competitor has posted N30 billion loss for this year.

    Abdulsamad Rabiu tied the increase in the price of cement to what he called “the cost of energy doubling.” Describing the current economic environment as dire, Abdulsamad Rabiu said the cost of procuring LPFO, diesel, fuel etc, have gone up because of the difficulty in accessing forex.

    According to him, “the situation is dire, but going forward we pray it gets better. Forex now is for oil production. The price of oil that has come down is also affecting forex and without forex it is not easy to do business. CCNN will continue to do its best, shareholders should be patient as the company is making efforts to access coal which is cheaper. The price of cement has not gone up as it should have been. It could have been worse at N2,000/bag. The price of cement in Nigeria compared to surrounding countries is reasonable.”

    The CCNN chairman revealed that “LPFO which is the main energy used by the company has not been supplied by the Kaduna refinery since August 2014, hence it has to rely on other sources, mostly importers as supply from other refineries was also epileptic. The company had to, at intermittent periods during the last quarter of 2015, shut down the plant due to scarcity and cost of energy.”

    He also disclosed that “there is quite a lot of talk on providing forex for manufacturers and assisting them with forex involving the CBN. But we are waiting for modalities on the planned initiative to make forex easily accessible to manufacturers, a lot of manufacturers are suffering and it is not an easy situation at all,” he said.

    During the year, the company recorded a turnover of N13,037,847,294 compared to N15,119,050,874 in 2014. The profit after tax was N1,201,108,049 compared to N1,918,361,854 in 2014. Weak demand for cement particularly in the second half of the year, mainly contributed to the low turnover and lower profits compared to 2014.

    The board approved the payment of a gross dividend of 10k per share, compared to last year’s 35k per share.

  • CCNN holds AGM September 8

    The board of directors of Cement Company of Northern Nigeria (CCNN) Plc has rescheduled the company’s annual general meeting to Thursday, September 8, 2016.

    A statement yesterday by the company secretary, Ahmed Aliyu, the 37th annual general meeting (AGM) earlier scheduled for Thursday August 11, 2016, for 10 am at the Transcorp Hilton Hotel, Abuja, will now hold at the same place and time on Thursday September 8, 2016.

    At the AGM, shareholders would consider and approve the audited financial statements and accounts of the company for the year ended December 31, 2015. Also, shareholders are expected to approve the dividend of 10 kobo per share recommended by the board of directors. The cash dividend will now be paid to shareholders as from Tuesday, September 13, 2016.

    CCNN recorded a turnover of N13.04 billion in 2015, as the Sokoto-based cement company survived the tough macro-economic and industry environment to deliver a resilient performance. Major highlights of the audited report and accounts of the company for the year ended December 31, 2015 showed that it recorded pre and post tax profits of N1.55 billion and N1.20 billion on a turnover of N13.04 billion during the year. Gross profit stood at N3.96 billion.

    The company improved its intrinsic value during the year with net assets per share rising by seven per cent from N7.52 in 2014 to N8.07 in 2015. Total assets also rose by nine per cent from N15.78 billion to N17.15 billion. Non-current assets had grown by 21 per cent from N8.37 billion to N10.12 billion. Shareholders’ funds also improved by seven per cent from N9.45 billion in 2014 to N10.14 billion in 2015.

    The board of directors has recommended distribution of a total of N125.7 million to shareholders as cash dividends for the 2015 business year, representing a dividend per share of 10 kobo. The dividend recommendation implies that the board of directors took a long-term and prudent view of dividend payout by retaining higher net earnings to support the company.  The board decided to reduce the payout ratio from about 23 per cent of net profit in 2014 to 10.5 per cent of net profit in 2015, flowing back larger profit into the company’s operations.

    Commenting on the results,  CCNN Managing Director, Malam Ibrahim Aminu, said the company’s performance in 2015 showed steadiness and resilience, when viewed against the background of macro-economic challenges, especially in the areas of energy supply and foreign exchange.

    Without access to gas because of its location in Sokoto, Sokoto State, CCNN depends on Low Pour Fuel Oil (LPFO), which it sources from Nigeria National Petroleum Company (NNPC), Kaduna Refinery. CCNN is therefore exposed to twin risks of the high cost of LPFO and the fluctuation in supply. LPFO price accounts for 65 per cent of the company’s cost of production.  When the supplies become erratic or enterely unavailable, more expensive imported LPFO is used by CCNN at a higher cost.

  • CCNN donates drugs to host communities

    CCNN donates drugs to host communities

    Cement Company of Northern Nigeria (CCNN) Plc has restated its commitment to the wellbeing of its host communities, after donating assorted drugs to health centres in Wamakko Local Government, Sokoto State.

    The drugs, which included antibiotics and antigenes for pre and post natal medical treatments, were donated to five clinics. They are Arkilla Primary Healthcare Centre, Kalambaina Dispensary, Kalambaina Mobile Police Barracks’ Clinic, Wajeke Clinic and Sabon Garin Alu.

    Addressing stakeholders during the donation, Managing Director, Cement Company of Northern Nigeria (CCNN) Plc, Mr Aminu Ibrahim, who was represented by Director, Human Resources, CCNN, Alhaji Yawalle Isa, said the company places emphasis on corporate social responsibility to enable its neighbouring communities benefit from its industrial development.

    According to him, the company is totally committed to ensuring that host communities have good and potable water, health and electricity as part of continuous efforts to cater for the wellbeing of the populace.

    He noted that CCNN enjoys a cordial relationship with its host communities, which has given it the much-needed environment to operate; protect the shareholders investment and in turn contribute to the socio-economic development of the communities themselves.

    He pointed out that CCNN’s corporate social responsibility gestures not only cater to the needs of the immediate host and neighbouring communities, but across the entire Sokoto State and other states; adding that  the company has since extended its scholarship scheme to students from Sokoto, Kebbi and Zamfara states.

    He urged the people to continue to support the company and assured them that CCNN will remain community-friendly in its operations by protecting the interests of all stakeholders.

    In his remarks, District Head, Arkilla, Alhaji Aliyu Hassan, commended CCNN for its continued support to the communities within the district.

    In the same vein, District Head, Kalambaina, Alhaji Abubakar Ahmad, lauded the donations by CCNN noting that they will go a long way in assisting the communities.

    The representative of the Kalambaina Mobile Barracks’ Clinic, Mr Kabiru Isah, noted the regularity of the donations from CCNN, adding that such gestures have endeared the company to stakeholders.

     

  • Kudos for CCNN

    Shareholders have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.

    The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.

    Speaking on behalf of a shareholder group, Shehu Mallam Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.

    According to him, “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”

    Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.

    “With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”

    Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.

    “Shareholders would surely support companies that put smiles on their faces when dividends are being declared,”Afolabi Bankole, a shareholder said.

    “We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company.”

    They however stressed the need for the company need to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.

    CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.

    From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

     

  • Kudos for CCNN

    Shareholders have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.

    The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.

    Speaking on behalf of a shareholder group, Shehu Mallam Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.

    According to him, “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”

    Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.

    “With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”

    Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.

    “Shareholders would surely support companies that put smiles on their faces when dividends are being declared,”Afolabi Bankole, a shareholder said.

    “We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company.”

    They however stressed the need for the company need to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.

    CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.

    From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

  • CCNN begins $300m cement plant expansion

    Cement Company of Northern Nigeria (CCNN) Plc has launched a $300 million expansion project to modernise and increase the capacity of its 30-year old cement plant.

    The expansion project, estimated at about N48 billion, would increase the company’s installed capacity by 200 per cent to 1.5 million metric tonnes. The take-off fund for the expansion was provided by BUA International Limited, which holds 50.72 per cent equity stake in CCNN through its wholly-owned subsidiary-Damnaz Cement Company.

    The expansion is part of the ongoing modernisation and cost optimisation programme aimed at reducing average cost and enhancing productive capacity with a view to ensuring that CCNN remained competitive in the cement industry.

    There are indications that the company may subsequently float supplementary equity issue to refinance its capital structure and provide long-term funds necessary for such long-term expansion project.

    President, BUA International Limited and chairman, Cement Company of Northern Nigeria (CCNN), Alhaji Abdulsamad Rabiu, confirmed the commencement of the expansion project, said the core investor sourced the funds for the expansion for CCNN.

    According to him, after considering all the options, the core investors decided to jumpstart the expansion plan given its strategic importance to competitiveness of the cement company. It should be recalled that CCNN had earlier secured shareholders’ approval to raise new funds of about N45 billion but it was unable to float equity issue due to the lingering investors’ apathy at the primary issue market.

    Rabiu said expansion was the highpoint of the competitive strategy of the cement company, noting that in spite of the high quality of its cement, bigger cement companies pose threats to CCNN’s market share.

    In a chat with The Nation, managing director, Cement Company of Northern Nigeria (CCNN), Mr. Alf Karlsen, said the increase in installed capacity would enable the company to maintain its current market share and expand into new markets.

    He noted that CCNN is currently the major supplier of cement in the Sokoto, Kebbi and Zamfara axis adding that the high quality of its cement brand has enabled the company to maintain the lead within its niche market.

    He assured shareholders that CCNN would remain competitive and make good returns to investors as it implements various initiatives to boost capacity and reduce cost.

    CCNN last month distributed N880 million as cash dividends to shareholders, implying a dividend per share of 70 kobo. The dividend payment came on the heels of sustained improvements in the company’s fundamentals.

    Audited and emerging earnings reports of CCNN had indicated significant improvements in actual and underlying returns of the cement-manufacturing company. Audited report and accounts of CCNN for the year ended December 31, 2013 had shown that a more efficient cost management and appreciable growth in sales underpinned substantial growth in profit and returns to shareholders. Gross and pre-tax profit margins improved from 28.1 per cent and 10.9 per cent in 2012 to 31.8 per cent and 12.5 per cent respectively in 2013.

    While sales had grown by 4.4 per cent, declines in cost of sales and finance expenses as well as containment of the operating expenses impacted positively on the bottom-line. Besides, the report also showed considerable improvements in financing structure and liquidity, providing a positive balance sheet support that enabled top-line performance to trickle down into substantial earnings to shareholders. The company halved its gearing ratio and further increased equity funding just as liquidity improved to a new high.

    The profit outlook of the company improved appreciably during the year with both actual and underlying profitability ratios showing corresponding performance. Underlying profitability indices showed a generally positive outlook. Gross profit margin improved from 28.1 per cent in 2012 to 31.8 per cent in 2013. Average pre-tax profit per every unit of sales increased from about 10.9 per cent to 12.5 per cent. Return on total assets improved from 11.6 per cent to 13.1 per cent. Return on equity was steady at 15.7 per cent.

    The underlying performance reflected the improvements in the operations and productivity of the company as well as increase in its cost management. Total sales reached a new high at N15.8 billion in 2013 compared with N15 billion in 2012. Cost of sales meanwhile slipped marginally from N10.88 billion to N10.77 billion. Gross profit thus rose by 18 per cent from N4.24 billion to N5.02 billion. Operating expense was curtailed at N3.64 billion in 2013 as against N3.40 billion in 2012. While non-core business income dropped by 22 per cent from N958 million to N743 million, the reduction in interest expenses counterbalanced the negative effect. Finance expenses dropped to N147 million as against N152.

    With all these, profit before tax rose by 19.2 per cent to N1.97 billion in 2013 as against N1.65 billion in 2012. Profit after tax also grew by 19.1 per cent to N1.42 billion compared with N1.20 billion in the previous year. Basic earnings per share thus improved from 95 kobo to N1.13.

    Also, emerging earnings reports for the current business year have shown a stronger upward growth trajectory. Interim report and accounts of CCNN for the six-month period ended June 30, 2014 showed that sales rose by seven per cent in first half 2014 to N9.39 billion as against N8.81 billion recorded in corresponding period of 2013. Profit before tax almost doubled from N1.22 billion to N2.34 billion. Profit after tax showed similar performance, rising from N832.1 million in first half 2013 to N1.59 billion in first half 2014.

  • CCNN: Improved performance

    CCNN: Improved performance

    Cement Company of Northern Nigeria (CCNN) Plc rode on the back of improved productivity and efficiency to strengthen its overall performance outlook. Audited and emerging earnings reports indicated significant improvements in actual and underlying returns of the cement-manufacturing company. Audited report and accounts of CCNN for the year ended December 31, 2013 showed that a more efficient cost management and appreciable growth in sales underpinned substantial growth in profit and returns to shareholders. Gross and pre-tax profit margins improved from 28.1 per cent and 10.9 per cent in 2012 to 31.8 per cent and 12.5 per cent respectively in 2013.

    With 19 per cent increase in profit after tax, the company has earmarked N880 million as cash dividends to shareholders for the 2013 business. While sales had grown by 4.4 per cent, declines in cost of sales and finance expenses as well as containment of the operating expenses impacted positively on the bottom-line.

    Besides, the report also showed considerable improvements in financing structure and liquidity, providing a positive balance sheet support that enabled top-line performance to trickle down into substantial earnings to shareholders. The company halved its gearing ratio and further increased equity funding just as liquidity improved to a new high.

     

    Financing structure

    CCNN restructured its balance sheet in 2013 with significant reduction in bank loans and other liabilities. With about 46 per cent decline in bank loans, current liabilities dropped by about 19 per cent. This reduced the total liabilities by 9.2 per cent.

    The financing position showed low financial leverage and significant improvement in equity funding. The company’s debt-to-equity ratio dropped from 15.9 per cent in 2012 to 7.5 per cent in 2013 while the proportion of equity funds to total assets increased to 60.2 per cent in 2013 as against 53.6 per cent in 2012. Current liabilities/total assets ratio improved from 36.5 per cent to 28.1 per cent while long-term liabilities/total assets stood at about 40 per cent per cent in 2013 as against 46.4 per cent in 2012.

    CCNN’s total assets had increased by 5.7 per cent from N14.24 billion in 2012 to N15.06 billion in 2013. Permanent assets had improved by 9.2 per cent from N6.50 billion to N7.10 billion while current assets inched up from N7.74 billion to N7.96 billion. Meanwhile, total liabilities dropped from N6.60 billion to N6 billion. The paid up share capital remained unchanged at N628 million while shareholders’ funds grew by 18.6 per cent to N9.06 billion as against N7.64 billion in previous year.

     

    Efficiency

    The company’s performance outlook showed dual benefits of improved productivity and cost efficiency. The company optimized modest increase in average cost into substantial improvement in average productivity, resulting in wider margin for value creation. Total costs of business, excluding financing charges, reduced to 91.3 per cent of total sales in 2013 as against 94.4 per cent in previous year. While average cost per staff increased from N4.33 million to N5.11 million, average contribution of each employee to pre-tax profit also trended upward from N4.32 million to N5.20 million. Average number of employees stood at 379 persons in 2013 as against 383 persons in 2012. Aggregate staff cost also dropped correspondingly from N220.44 million in 2014 to N175.9 million.

    The profit outlook of the company improved appreciably during the year with both actual and underlying profitability ratios showing corresponding performance. Underlying profitability indices showed a generally positive outlook. Gross profit margin improved from 28.1 per cent in 2012 to 31.8 per cent in 2013. Average pre-tax profit per every unit of sales increased from about 10.9 per cent to 12.5 per cent. Return on total assets improved from 11.6 per cent to 13.1 per cent. Return on equity was steady at 15.7 per cent.

    The underlying performance reflected the improvements in the operations and productivity of the company as well as increase in its cost management. Total sales reached a new high at N15.8 billion in 2013 compared with N15 billion in 2012. Cost of sales meanwhile slipped marginally from N10.88 billion to N10.77 billion. Gross profit thus rose by 18 per cent from N4.24 billion to N5.02 billion. Operating expense was curtailed at N3.64 billion in 2013 as against N3.40 billion in 2012. While non-core business income dropped by 22 per cent from N958 million to N743 million, the reduction in interest expenses counterbalanced the negative effect. Finance expenses dropped to N147 million as against N152.

    With all these, profit before tax rose by 19.2 per cent to N1.97 billion in 2013 as against N1.65 billion in 2012. Profit after tax also grew by 19.1 per cent to N1.42 billion compared with N1.20 billion in the previous year. Basic earnings per share thus improved from 95 kobo to N1.13. The board of the company has recommended distribution of N880 million as cash dividends, implying a dividend per share of 70 kobo. It did not pay any dividend in the previous year. The dividend outlook remained substantially high at 1.61 times.

     

    Liquidity

    The liquidity position of the company improved substantially during the period with better coverage for emerging liabilities and increased working capital relative to operations. Current ratio, which indicates ability of the company to meet emerging financing needs by relating current assets with relevant liabilities, improved from 1.49 times in 2012 to 1.88 times in 2013. The proportion of working capital to total sales also improved from 16.8 per cent in 2012 to 23.6 per cent in 2013. Debtors/creditors ratio stood at 3.8 per cent in 2013 as against 1.3 per cent in 2012.

    Governance and structures

    Incorporated in August 1962, CCNN commenced business operations in 1967. A wholly-owned Nigerian company with more than 35,000 shareholders, CCNN’s shares were listed on the Nigerian Stock Exchange (NSE) in October 1993.

    BUA International Limited-through its wholly-owned subsidiary-Damnaz Cement Company, holds 50.72 per cent majority equity stake. Nasdal Bap Nigeria Limited holds the second largest equity stake of 11.48 per cent.

    There were no major changes on the board and management of the company. Alhaji Abdulsamad Rabiu, the president of BUA International, chairs l the board of directors while Mr. Alf Karlsen remains the managing director and chief executive. CNN has signed on to the code of corporate governance. Broadly, the company complied with relevant provisions of the code.

    Analyst’s opinion

    Against the background of the difficult operating environment characterized by the lingering insurgency in the Northern market and the epileptic power supply, the performance of CCNN shows a reassuring outlook. Latest reports have underlined the success of sustained growth initiatives and reassured on the prospects of the company in the years ahead. In 2013, CCNN had successfully reintroduced biomass as a supplementary kiln fuel, which helped in reducing energy costs. The company has also jump-started its capacity expansion programme while simultaneously working to convert existing production line to solid fuels like coal.

    Already, emerging earnings reports for the current business year have shown a stronger upward growth trajectory. Interim report and accounts of CCNN for the six-month period ended June 30, 2014 showed that sales rose by seven per cent in first half 2014 to N9.39 billion as against N8.81 billion recorded in corresponding period of 2013. Profit before tax almost doubled from N1.22 billion to N2.34 billion. Profit after tax showed similar performance, rising from N832.1 million in first half 2013 to N1.59 billion in first half 2014.

    With the growth initiatives by CCNN and the positive industry outlook of the cement industry, there is reasonable basis to assume that CCNN would sustain improved performance in the years ahead.