CEMENT Company of Northern Nigeria Plc (CCNN) (Sokoto Cement) – a subsidiary of Nigeria’s top conglomerate BUA Group has increased his profit after tax (PAT) 23.02 percent to N1.918 billion for the 2014 financial year from N1.559 billion recorded a year earlier.
Abdulsamad Rabiu, chairman of CCNN at its 36th annual general meeting (AGM) said that despite lower cement sales recorded in the last quarter of 2014 mainly due to pockets of unrest in CCNN Plc’s business markets, the company’s focus on efficiency and strategic investments resulted in steady growth during this period.
According to the CCNN chairman, from a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014.
He says shareholders were also apprised about notable developments the company took in the financial year, including CCNN Plc’s proposed N48 billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.
Other business of the day included an amendment of articles 117 and 119 as contained in CCNN Plc’s Articles of Association, which saw shareholders assent to changes in reportage of financial results as well as the recognition of electronic mail addresses respectively. The chairman, Abdulsamad Rabiu as well as two other directors, Alf Karlsen and Kabiru Rabiu were re-elected to the board, a statement from the company said.
The statement says analysts expect BUA Group, CCNN Plc’s major shareholder to further boost revenue in 2015, with the coming on stream of its 3million metric tonne Obu Cement plant in Southern Nigeria.
Adetutu Adegbayibi, an investment research analyst at Meristem Securities anticipates that CCNN Plc’s figures for 2015 could show a PAT of N1.94 billion, 1.93 percent higher than 2014.
CCNN established in 1962 is one of Nigeria’s oldest cement companies, produces and markets cement under the brand name ‘Sokoto Cement’. The company also runs the only cement plant in North-West Nigeria. Its primary catchment areas are Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna States.