DANGCEM sells 23.54 metric tonnes of cement across Africa

A Dangote Cement Plc logo stands on a barrier at the under-construction Dangote Industries Ltd. oil refinery and fertilizer plant site in the Ibeju Lekki district, outside of Lagos, Nigeria, on Thursday, July 5, 2018. The $10 billion refinery, set to be one of the worlds largest and process 650,000 barrels of crude a day, should be near full capacity by mid-2020, Devakumar Edwin, group executive director at Dangote Industries said in an interview. Photographer: Tom Saater/Bloomberg via Getty Images

Dangote Cement Industries Plc on Wednesday said it sold a total 23.54 metric tonnes (MT) of cement across Africa for the financial year ended December 31, 2018.

The company said in its financial performance released on the Nigerian Stock Exchange (NSE) that the figure represented an increase of 7.4 per cent when compared with 21.92 MT sold in 2017.

It stated that Nigerian operations accounted for 14.18 MT representing an increase of 11.4 per cent over the volume of 12.72 MT sold during the preceding year.

The company said it maintained dominance in the Nigerian market having accounted for 65 per cent of the total volume sold in the domestic cement sector in 2018.

”The company also exported 800,000 tonnes of cement to West African countries, strengthening Nigeria’s position as a cement exporting country, creating jobs in the economy, and earning foreign exchange.

”The increase in the Nigerian volume is attributable to higher building activities as the economy recovered from recession,” the company said.

Commenting on the result, Joe Makoju, the company’s Group Chief Executive Officer, attributed the performance to strong increase in its home market, Nigeria.

”This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election,” Mr Makoju said.

Mr Makoju, who said Pan-African volumes were unchanged in 2018 expressed optimism that the company would see an increase in 2019 driven by higher volumes in Tanzania, Ethiopia, Congo and Sierra Leone.

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”Now that we have gas turbines operating in Tanzania we will also see increased profitability in the Pan-Africa region and this will help to improve overall Group margins,” he said.

Mr Makoju said across Africa, the cement group posted a combined revenue of N901.21 billion, with Nigerian operations accounting for N618.30 billion, representing an increase of 11.9 per cent over N552.36 billion in 2017.

He said Pan-African operations recorded revenues of N263.26 billion, an increase of 9.6 per cent over N258.44 billion posted in the corresponding period in 2017.

Mr Makoju said its profit after tax during the period stood at N390.32 billion in contrast to N204.25 billion, while earnings per share rose from N11.65 to N22.83.

The company directors are proposing a dividend of N16 per share which would be ratified by the shareholders during the Annual General Meeting.