Dangote Cement’s African projects drive revenue to N365.5 billion  

Aggressive expansion projects across Africa by Dangote Cement have started yielding positive fruits as the company, for the nine months ended September 30, 2015, recorded a turnover of N365.5 billion, 17.8 percent increase compared to the same period last year.

Simultaneously, Dangote exported 3.7 million metric tonnes of cement to neighbouring countries underscoring the fact that Nigeria is now self-sufficient in cement production.

Mr Onne Van der Weijde, Chief Executive of the company, said: “I am pleased to report that sales outside Nigeria have contributed nearly 29 percent of volume so far this year and 39 percent in the third quarter, which demonstrates that we are diversifying successfully and quickly gaining market shares in new countries.”

Van der Weijde said the company has just acquired 2,000 new trucks to help improve its logistics capabilities and enable it enhance its export of cement to neighbouring countries.

“Our key target will be Ghana, where we already have an import terminal that is at present supplied from outside the ECOWAS region.”

The nine months unaudited results released on the floor of the Nigerian Stock Exchange (NSE) showed that the cement giant’s earnings per share rose by 18.6 percent to N9.80.

Profit before tax is N166.9 billion for the nine months ended September 30, 2015 representing an increase of 8.4 percent compared to N154 billion in 2014.

A breakdown of the results indicated that the cement group posted an operating profit of N173.5 billion, 6.8 percent higher than N162.5 billion generated in 2014. Nigerian operations accounted for N162.7 billion, West & Central Africa N2.9 billion, while South & East Africa accounted for N7.4 billion.

Revenue rose by 17.8 percent to N365.5 billion following strong performance of non-Nigerian factories while gross profit grew by 13.5 percent to N226.8 billion.

Onne van der Weijde further said: “Our new operations have made strong starts right across Africa and this has helped to offset the impact of a subdued economy in Nigeria. We remain optimistic that our home market of Nigeria will recover and this will restore growth and improve overall profitability.

We hope our new pricing strategy will contribute to the country’s economic recovery and particularly urge the government to begin building more robust roads using concrete instead of imported asphalt.”

Dangote Cement is Africa’s leading cement producer with three plants in Nigeria and recently opened factories in Ethiopia, Zambia, South Africa, Senegal and Cameroun.  It is a fully integrated quarry-to-customer producer with production capacity of 29.25mta in Nigeria.

Its Obajana plant in Kogi State, Nigeria, is the largest in Africa with 13.25mta of capacity across four lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12mta. The Gboko plant in Benue State has 4mta.

 

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