Sokoto Cement records N14.087bn turnover in 2016

CEMENT Company of Northern Nigeria (CCNN), recorded gross turnover of N14, 087,553,499 in the 2016 financial year.

It’s  Chairman, Dr Abdulsamad Rabiu who made this known on Wednesday in Abuja during the company’s annual general meeting also disclosed that CCNN made a profit after tax of N1.25 billion during the year under consideration.

These he said was achieved despite the harsh economic environment, which prevailed in the country in that year.

The company was able to grow its profit by four percent from N1.2bn in 2015 to N1.25bn in 2016.

“Cement production in 2016 was 485,799 tons (23% increases) compared to 395.438 tons in 2015. Cement dispatch (sales) in 2016 was 488,495 tons (21% increases) compared to 404,377 tons in 2015.

He then attributed the ability of the company to make the profit to the strict cost efficiency regime which the management of the company was able to maintain during the period.

“Performance of the company during the year 2016 was a reflection of the board’s concerted efforts to ensure that CCNN continued to strive with better performance and enhanced shareholder value, despite the massive challenges in the operating environment.

“CCNN is still dominant in its home market in Sokoto, Kebbi, and Zamfara due to the quality of its cement and customer loyalty.

“This has contributed to the continued survival of the company in the market despite the numerous challenges.”

The board chairman said shareholders were not given dividends despite the after-tax profit to enable management to carry out critical investments.

“The board resolved not to recommend the payment of any dividend this year, in view of the challenges being faced by the company on worn out generators, cooler tubes and kiln shell which requires critical investments in replacements and repairs. This is meant to ensure the long terms survival of the company.”

Rabiu however, assured shareholders that daunting challenges notwithstanding, “we are very optimistic that the long-term outlook of cement industry in Nigeria is excellent due to the huge infrastructure requirements in the country as well as the neighbouring countries in the West Africa sub-region.”