CCNN Profit Up 77.78% To N5.73bn, Offers N5bn Total Dividend

The board of Cement Company of Northern Nigeria, on Friday presented its financials for the year ended December 31, 2018, showing the huge impact of its recent merger with sister-company Kalambaina Cement, which is also Sokoto-based, despite the 100.45% rise in administrative expenses and 80.58% growth in selling and distribution expenses.
A major highlight of the result is the board’s decision to pay N5.257bn, almost all of its entire N5.731bn net profit as dividend, up from N1.57bn in 2017. On account of its increased number of shares in issue, earnings per share dropped to 44 kobo, from previous year’s N2.57, out of which the directors are offering N0.40, representing a dividend yield of 2.11%.
Sales revenue for the period grew by 61.94% from N19.588bn to N31.721bn, N28.87bn of which was generated from within Nigeria and N2.851bn from outside the country. Cost of sales stood at N17.511bn, from N11.839bn in 2017, representing a 47.9% rise, the lion’s share of which was the N9.321bn energy cost, up from N6.964bn; followed by the N3.035bn spent on raw materials and consumables, which climbed from N1.61bn, among others. Gross profit climbed 83.4% from N7.748bn to N14.21bn.
Other income rose to N243.49m from N103.21m, boosted by the first-line gain on remeasurement of identifiable of N182.656m; selling and distribution expenses increased to N1.571bn from N869.99m, which was mainly the N1.371bn distribution cost, which rose from N707.331m.
Administrative expenses increased to N5.008bn from N2.498bn, the biggest of which was the N2.275bn technical and management fees of N648.281m paid to Damnaz Cement Company Limited. This was followed by the N710.88m in salaries, wages and benefits, which rose from N660.88m. The company also spent N534.266m as cost of its merger with Kalambaina Cement.
Operating profit therefore stood at N7.874bn, 75.65% better than N4.483bn in 2017.
Finance income rose 27.16% up from N108.2m to N137.59m, being interest on defined benefit obligations of N124.984m, compared to N105.345m in 2017; finance expenses (interest on borrowings) rose marginally from N388.16m to N420.5m; and net finance expense from N279.96m to N282.91m.
Profit before tax was up 80.62% from N4.203bn to N7.591bn; just as after tax stood at N5.731bn, up 77.78% from N3.223bn in2017.

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