With an estimated market potential of cement consumption of running over 50 million metric tons per annum, the structure behind the growth in the sector could be traced to the cement market where Nigeria’s cement producers and investors alike are spearheading expansion and growth of the country cement sector.
Managing Director of Lafarge Cement Wapco, Mr. Joe Hudson, who disclosed this in Abuja, stated that its financial accounts for three months ended 31 March 2013 show as follows : Profit After Tax (PAT) grew 49 per cent year on year ,y/y to N6.1 billion with modest sales of N23.3 billion; Its profit before tax (PBT) grew 21 per cent y/y due to a number of factors such as a gross margin expansion of 181bps to 42.8 per cent, flattish opex and a 35 per cent decline in net interest income.
A lower tax rate of 15.7 per cent compared with 31.8 per cent in first quarter 2012 resulted in profit after tax growing faster than profit before tax, the sales grew 29 per cent quarter on quarter q/q, while profit before tax and profit after tax advanced by 46 per cent and 56 per cent q/q respectively.
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