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Cement companies post record revenues on higher demand, price hikes

Nigerian cement producing giants, Dangote, BUA Cement, and Lafarge raked in a sum of N1.93 trillion revenue in 2021 as construction activities picked up during the year from the slump in the previous year.

Specifically, revenue generated from the three listed cement companies increased by 31.2% year-on-year compared to N1.47 trillion generated in 2020. Similarly, the aggregate bottom line for the companies also increased by 33.3% to N505.52 billion from N379.25 billion recorded in the year before.

This is according to data collected by Nairametrics Research from the audited financial statements available on the Nigerian Exchange.

The data also showed that Dangote Cement recorded the highest gross revenue of N1.38 trillion, followed by Lafarge Africa with N293.1 billion, and Bua Cement with revenue of N257.33 billion.

Moreso, on aggregate they boast of a total asset value of N3.65 trillion, representing over 5% of the Nigerian real GDP, while their net assets stood at N1.76 trillion.

Economy revamp boost top line

Construction activities resumed full swing in 2021 following the restart of infrastructural projects and constructions across the country, which were put on hold due to movement restrictions placed by the federal government to curb the spread of the covid-19 pandemic.


According to data from the National Bureau of Statistics, Nigeria’s construction sector grew by 3.46% year-on-year in real terms in 2021, compared to a 7.68% contraction recorded in the previous year, to stand at a valuation of N2.52 trillion.

Also, the cement industry recorded a 6.64% year-on-year real growth in the review year, compared to 3.88% expansion printed in the previous year. No doubt, the improved activity in the cement and construction industry of the economy gave rise to the improvement recorded by the cement manufacturers both on their top line and bottom line.


Below is a breakdown of the financial performance of the three listed cement manufacturers in Nigeria.

Dangote Cement – N1.38 trillion, +33.8%

The most capitalized manufacturing company on the Nigerian Stock market, Dangote Cement raked in a sum of N1.38 trillion as revenue in the review year, surging by 33.8% compared to N1.03 trillion generated in the previous year.

  • A revenue breakdown showed that N956.96 billion was made from domestic sales, while N36.44 billion was generated from export sales.
  • With its cost of sales stated at N551 billion, its gross profit increased to N832.61 billion, leading to an improved gross profit margin of 60.2% from 57.7% recorded in the previous year.
  • Dangote Cement also grew its net profit by 32% to N364.4 billion in 2021, printing ROE and ROA of 37% and 15.2% respectively.
  • Also, its net asset increased by 10.4% to N983.7 billion, while total assets jumped by 18.3% to stand at N2.39 trillion as of December 2021.

Lafarge Africa – N293.1 billion, +27.1%

Lafarge Africa made a sum of N293.1 billion as revenue in 2021, surpassing the N230.57 billion it recorded in 2020 by 27.1%. Similarly, the cement giant also recorded a 65.4% growth in profit after tax of N51 billion compared to N30.84 trillion recorded in the previous year.

  • In the same vein, gross profit improved by 31% to N142.58 billion in 2021 compared to N108.86 billion recorded in 2020. Its gross profit margin also Improved slightly to 48.6% in 2021 from 47.2% in the preceding year.
  • The revenue breakdown of the company showed that N285.12 billion was made from the sales of cement, N7.63 billion from the sales of aggregate and concrete, while the company made N338.6 million from the sale of mortar.
  • Its profitability ratios also moved in a positive direction, with ROE and ROA improving to 13.5% and 9.47% from 8.6% and 6.1% respectively.
  • Net assets also increased by 5.3% year-on-year to N378.56 billion in 2021, as opposed to N359.65 billion recorded in the previous year, while total assets grew to N526.84 billion.

BUA Cement – N257.33 billion, +22.9%

BUA Cement generated N257.33 billion as revenue in 2021, growing its top line by 22.9% compared to N209.44 billion recorded in the previous year. A further check of the company’s audited report revealed that N256.7 billion was made from the sale of bagged cement, while the rest was from the sale of bulk cement.

  • In terms of net profit, Bua Cement recorded a 24.5% increase in profit after tax, following a 26.7% growth in gross profit.
  • In line with the performance of the others, its gross profit margin improved to 47% in 2021 from the 45.6% recorded in the previous year.
  • On the flip side, its total asset value declined by 4.9% to N728.6 billion, owing to the drop in the value of its current assets, specifically its trade and other receivables.
  • Its net asset however increased by 5.9% to stand at N398.1 billion as of December 2021.

Why this matter

The Nigerian cement industry is a growing sector of the Nigerian economy, largely linked to the performance of the construction sector. The cement industry only accounts for 0.91% of Nigeria’s real GDP. However, the boost in the performance of the cement producers will have a significant impact on the economic value that the sector presents to the country’s economy as a whole.



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