Cement Company of Northern Nigeria Plc 2016 Financial Summary
PRINCIPAL ACTIVITIES
The Principal activities of the Company are Manufacturing
and Sales of Cement to the general Public.
LEGAL FORM
The Company was incorporated as a Limited Liability Company on
the 15th August 1962 and commenced business in 1967. The Company was
listed on the Nigerian Stock Exchange on the 4th October, 1993.
Damnaz Cement Company Limited is a wholly-owned subsidiary
of BUA International Limited through which BUA International Limited’s investment
of 50.72% in CCNN Plc is held.
Share Holding Structure
Damnaz Cement co. ltd 50.72%
Nasdal Bap Nifg. Ltd 11.48%
Kebbi State Investment Co. Ltd 4.88%
Together the above three holds 67.08% of total shares outstanding
| 12 Months Report CEMENT COMPANY OF NORTHERN NIGERIA PLC | ||||
| 2016 N'000 |
2015 N'000 |
change | Year End | |
| Revenue | 14,087,553 | 13,037,847 | 8% | December |
| Profit/Loss before taxation | 1,740,522 | 1,549,596 | 12% | |
| Profit for the period | 1,253,805 | 1,201,108 | 4% | |
| Issued Shares (Units) | 1,256,677,766 | 1,256,677,766 | ||
| Basic Earnings Per Shares (Kobo) | 100.00 | 96.00 | 4% | |
| Last total dividend paid (Kobo) | 0.00 | 10.00 | -100% |
Quarter on Quarter performance
Revenue PAT
N'000 N'000
Q1: #3,569,965 Q1: #242,561
Q2: #2,909,643 Q2: #416,064
Q3: #2,749,733 Q3: #62,952
Q4: #4,858,212 Q4: #532,228
The Cement industry in Nigeria is such that each player enjoy a measure of monopoly in the region they operate. This may not be far fetched from the fact that the end product is bulky and cost of transportation high. The closer you are to your market the better. That is why you see them dominant in specific areas in the country. Dangote cement and Wapco in the South west and middle belt. BUA in the south south although Wapco has influence in south south through UNICEM but not as dominant as BUA.
CCNN average revenue for 2016 was #3,5billion and Profit after tax was #313.4million. The Q3 was PAT was negatively impacted buy cost of sales. Revenue was hard sale combined with prevailing low price and seasonal impact of the raining that slowed down construction. The price take up by Dangote cement at the end of Q3 was a saving grace and the company was able to cover lost ground in Q4.
A closer look at the result shows that selling and distribution expenses grew by 222.77% in a period when revenue only grew by 8%. It was a tough year for CCNN selling and this needs to improve in order for the company to remain competitive.
The above justified the reason for the increase in trade and other receivables from #482.92million to 1.7billion in 2016 that was an increase of 270.58%. CCNN just have to sell thereby financing its trade.
CCNN has a capacity of 500,000metric tonnes out of which a total of 485,799metric tonnes was utilized. CCNN problem happen not to be capacity utilization but of favorable pricing as it is not the Market leader.
It would have been terrible but for some areas where the company was able to safe face. Net finance cost reduced by #261.66million.
The Realised exchange again was also a plus to its other income. it increased by 194.30% against what it was in 2015. Included in the other income is also profit from disposal of assets that increased by 152.62% from what it was in 2015.
CCNN was more generous in 2016, the company increased its donation by 125.87% one can only hope this translate to profit in future for the company and its stakeholders.
The company did not declare dividend even with an earning of 100K, they should be able to tell all stakeholders reason behind this and what they intend to do with the Fund.
The stock closed today 27th March at #4.70 with just 230units of stock traded.
We envisaged that, the expectation of a better 2017 should sustain the price, but until then, let the Market decide.
The Cement industry in Nigeria is such that each player enjoy a measure of monopoly in the region they operate. This may not be far fetched from the fact that the end product is bulky and cost of transportation high. The closer you are to your market the better. That is why you see them dominant in specific areas in the country. Dangote cement and Wapco in the South west and middle belt. BUA in the south south although Wapco has influence in south south through UNICEM but not as dominant as BUA.
CCNN average revenue for 2016 was #3,5billion and Profit after tax was #313.4million. The Q3 was PAT was negatively impacted buy cost of sales. Revenue was hard sale combined with prevailing low price and seasonal impact of the raining that slowed down construction. The price take up by Dangote cement at the end of Q3 was a saving grace and the company was able to cover lost ground in Q4.
A closer look at the result shows that selling and distribution expenses grew by 222.77% in a period when revenue only grew by 8%. It was a tough year for CCNN selling and this needs to improve in order for the company to remain competitive.
The above justified the reason for the increase in trade and other receivables from #482.92million to 1.7billion in 2016 that was an increase of 270.58%. CCNN just have to sell thereby financing its trade.
CCNN has a capacity of 500,000metric tonnes out of which a total of 485,799metric tonnes was utilized. CCNN problem happen not to be capacity utilization but of favorable pricing as it is not the Market leader.
It would have been terrible but for some areas where the company was able to safe face. Net finance cost reduced by #261.66million.
The Realised exchange again was also a plus to its other income. it increased by 194.30% against what it was in 2015. Included in the other income is also profit from disposal of assets that increased by 152.62% from what it was in 2015.
CCNN was more generous in 2016, the company increased its donation by 125.87% one can only hope this translate to profit in future for the company and its stakeholders.
The company did not declare dividend even with an earning of 100K, they should be able to tell all stakeholders reason behind this and what they intend to do with the Fund.
The stock closed today 27th March at #4.70 with just 230units of stock traded.
We envisaged that, the expectation of a better 2017 should sustain the price, but until then, let the Market decide.
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