Cement Company of Northern Nigeria plc (CCNN), a subsidiary of BUA Group, has declared a profit after tax (PAT) of N1.918 billion for the 2014 financial year, representing a 23.05 percent increase from a PAT of N1.559 billion in 2013.
Abdulsamad Rabiu, chairman of CCNN, rising from the company’s 36 annual general meeting, yesterday in Abuja, said despite lower cement sales recorded in the last quarter of 2014, mainly due to pockets of unrest in CCNN’s business markets, the company’s focus on efficiency and strategic investments resulted in steady growth.
From a high of N2.77 billion in 2013, CCNN’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also told of notable developments the company had in the financial year, including CCNN’s proposed N48 billion-cement plant expansion, which will modernise production facilities and raise the company’s output to 2 million metric tons of cement annually.
Other business of the day included an amendment of articles 117 and 119 as contained in CCNN’s Articles of Association, which saw shareholders assent to changes in reportage of financial results as well as the recognition of electronic mail addresses, respectively.
Analysts expect BUA Group, CCNN’s chief shareholder, to further boost revenue in 2015, with the coming on stream of its 3 million metric ton Obu Cement plant in Southern Nigeria.
Adetutu Adegbayibi, an investment research analyst at Meristem Securities, anticipates that CCNN’s figures for 2015 could show a PAT of N1.94 billion, 1.93 percent higher than 2014.
Established in 1962, CCNN, which is one of Nigeria’s oldest cement companies, produces and markets cement under the brand name ‘Sokoto Cement.’ The company also runs the only cement plant in North-West Nigeria. Its primary catchment areas are Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states.
Source : BusinessDay