The board of Cement Company of Northern Nigeria (CCNN), on Tuesday presented its audited result for the year ended December 31, 2017, showing that profit grew at a faster pace than turnover, just as cost of sales was constrained, just as the management successfully reduced borrowings for the period.
The directors have therefore recommended a dividend of N1.57bn, which translates to N1.25 per share for the period, to be distributed subject to shareholders’ approval at the next annual general meetinging.
Turnover for the period rose 39% from N14.087bn to N19.588bn, almost of which was earned from selling cement in Nigeria, while only N154.979m came from outside the country.
CCNN’s cost of sales could only rise by 18% to N11.983bn from N10.151bn, the lion’s share of which was the N6.694bn energy cost, as against N5.399bn in 2016; followed by N1.61bn spent on raw materials and consumables, down from N2.031bn; while salaries, wages and benefits gulped N1.403bn, up from N1.241bn. This resulted in gross profit of N7.605bn, which was 93% better than the N3.936bn recorded in the prior year.
Other income dropped to N103.213m from N138.319m, with insurance claims of N47.073m, as against N3.383m; followed by deferred revenue of N37.017m, down from N48.476m.
Selling and distribution expenses increased to N882.806m, up from N367.636m, of which distribution cost amounted to N707.331m, compared to the previous N109.805m.
Administrative expenses jumped to N2.598bn from N1.9bn, buoyed by the N760.821m for salaries, wages and benefits, which rose from N631.407m; followed by technical and management fees of N648.28m, as against the previous N459.055m.
Operating profit stood at N4.226bn, as against the previous N1.806bn.
Finance income slipped from N132.722m to N108.202m, with interest income at N123.833m from N51.425m, while interest on defined benefit obligation was negative at N15.631m from N81.297m; finance cost dropped to N131.901, down from N198.7m, with interest on borrowings dropping to N154.841m from N221.092m; bringing net finance expenses to N23.698m from N65.977m; while Profit before tax jumped to N4.203bn from N1.74bn, representing a 141% increase; just as net profit increased from N1.253bn to N3.223bn, which was a 157% improvement. The net profit translated to Earnings Per Share of 257 kobo, as against the previous 100 kobo.