…posts impressive nine months results
Management of Dangote Cement has assured its shareholders that it would not rest on its oars but continue to apply the strategic modification of its production processes which has shot the company above competition over the years.
The foremost cement manufacturer made this pledge just as it announced impressive results which showed growth level on all ramifications with boost in sales resulting in increase in both turnover and profitability in the third quarter of the year.
Sales of Dangote cement increased by 29.5 per cent in Nigeria to 9.95 million tonnes, while an estimated 16 million tonnes of cement was sold in the country in the reviewed nine months, ended on September 30, 2013.
For the reviewed period, Dangote Cement revenue increased by 28.7 per cent while its profits grew by 39.4 per cent to N189.4 billion.
The cement giant’s financial result released on the floor of the Nigerian Stock Exchange (NSE), showed that, while its profit before tax (PBT) rose to N151.73 billion indicating an increase of N45 billion over N106.43 billion in 2012, its group operating profit rose by 36.4 percent to N156.89billion.
In the three months ended September 30, 2013, gross profits stood at N57.26 billion in contrast to N43.91 billion in 2012 while PBT rose from N35.62 billion to N44.05 billion.
The Cement’s group revenue for the period under review went up by N64 billion or 28.7 percent to N288.98 billion compared to N244.50 billion at the preceding year.
In the three months ended September 30, 2013, the group earned N90.52 billion in contrast to N70 billion in 2012.
Group Managing Director, Dangote Cement, Devakumar Edwin commenting on the result said, “Demand for cement remains strong in Nigeria and with our sales nearly 30 percent higher than last year, Dangote Cement has grown at twice the market’s rate of growth.”
“As we predicted in July, the gas supply to Obajana was lower than desired during the third quarter and we are looking for additional sources of gas and other fuels such as coal to keep us fully supplied in the coming years.”
“Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in the early part of 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa’s leading supplier of cement.”
Dangote Cement is Nigeria’s leading cement producer with three plants in Nigeria and plans to expand in 13 other African countries. The Group is a fully integrated quarry-to-customer producer with production capacity of 20.25mta in Nigeria, with plans to increase to at least 29mta in 2015.
The Group plans to build more integrated, grinding and import facilities across Africa, bringing its total capacity to more than 50mta by the end of 2016.
Dangote Cement’s Obajana plant in Kogi state, Nigeria, is the largest in Sub-Saharan Africa with 10.25mta capacity across three lines and a further 3mta capacity currently being built.
The new 6mta Ibese plant in Ogun state, near the key market of Lagos, was inaugurated in February 2012. Building is underway to add 6mta of capacity. The Gboko plant in Benue state has 4mta capacity.
Through its recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and is transforming the nation into an exporter serving neighbouring countries.
