Following its merger with Kalambaina Cement Company Limited, the Cement Company of Northern Nigeria Plc (CCNN), has recorded a laudable financial result in the first quarter period ended March 31, 2019.
Revenue for the period: CCNN‘s revenue jumped by 213 percent to N16.886 billion in Q1 2019, up from N5.394 billion in the corresponding period last year.
Gross Profit: The cement company’s gross profit increased by 239 percent to N7.689 billion in Q1 2019, up from N2.263 billion in Q1 2018
Profit before and after tax: More so, CCNN recorded a surge of 255 percent in profit before tax (PBT) to N5.348 billion in 2019, compared with N1.504 billion in 2018, while profit after tax followed same growth trajectory, rising by 235 per cent to N3.636 billion, from N1.083 billion in 2018.
Nairametrics had reported that CCNN received formal approval of the Securities and Exchange Commission (SEC) to merge with Kalambaina Cement Company Limited.
The development follows CCNN’s announcement regarding the merger. Accordingly, the Scheme of merger, the merger took effect from Monday, December 24, 2018.
The merger is expected to see the company’s cement production enlarged at a capacity of 2 million metric tonnes per annum.
About CCNN: The company manufactures and sells cement in Nigeria. Cement manufactured by CCNN are sold with the Sokoto Cement brand name. It primarily markets in Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states. The company was incorporated in 1962 and is headquartered in Sokoto State, Nigeria.
CCNN was established with an initial installed capacity of 100,000 metric tonnes per annum at the Kalambaina plant. The need to meet the increasing demand for cement necessitated an expansion of the plant with the commissioning of the second line with an installed capacity of 500,000 tons per annum in 1985. Thereafter, in 1986, the first line was shut down in 1986, leaving the plant with a rated output of 500,000 metric tonnes per annum.
CCNN is a subsidiary of BUA International Limited. The company is currently trading N15.30 on the floor of the Nigerian Stock Exchange (NSE).