Cement consumption decline continues

By Nkiruka Nnorom

CONSUMPTION of cement  in Nigeria contracted by 28 percent in the second quarter of 2017 over the same period in 2016, Lafarge Africa Plc has stated.

The company also forecasted a decline of 14 percent in demand for cement in the country this year due to recession compared to 12 percent decline recorded last year. It predicated its forecast on demand contraction in the first half of the year and the prevalent Naira liquidity squeeze.

Michel Puchercos, CEO, Lafarge Africa, stated: “National cement consumption contracted by 28 per cent in Q2 over last year. Likewise, our cement sales declined by 23 per cent in the quarter in Nigeria.

However, in spite of the lull in cement market, he said the company’s net sales for Q2’17, rose by 34 per cent to N73.5 billion compared to N55 billion in Q2’16.

The company’s statement of accounts released at the Nigerian Stock Exchange, NSE, showed that it returned to profitability with N8.71 billion profit before tax, PBT, from loss after tax of N27.97 billion. Net income improved significantly to N14.6 billion in the same period.

Puchercos noted that the increase in sales was helped by enhanced prices, optimized logistics and strong plant performance.

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