Nigeria’s Cement Industry in 2020: The Boom Amidst the Burst

Dangote cement plc reported a 23% Return on Invested Capital (ROIC), which overshot its nearest competitor (BUA) by 600bps. Lafarge came in a distant third with an ROIC of 6%. We, however, note the gradual increase in Lafarge’s performance over the last five years as it continues to grow its ROIC from the 1% it reported in 2016. We believe this continued uptrend in its performance is hinged on the selloff of its South Africa operations, a strategic action that has continued to impact performance favourably.

[INFOGRAPHICS] H1’20 Top and Bottom Line of Cement Companies in Nigeria

Nigerian cement companies recorded aggregate growth in their revenues and net income for the half year ended Jun’2020. From our analysis, we highlight that cement volumes actually declined for the companies during the period compared to H1’19 and this is as a result of the social distancing lockdown measures (particularly in April) initiated to combat […]

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