Dangote Cement reports N891.7bn revenue

The 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

Despite a harsh operating environment, Dangote Cement Plc has leveraged on its size and strength to post an impressive performance in the year 2019, with the shareholders approving a dividend payout of N16 per ordinary 50k share.

Excited representatives of shareholders at the virtual 11th Annual General Meeting (AGM) held in Lagos yesterday commended the management for the company’s resilience to record the profit despite the global economic challenges.

Chairman of Dangote Cement Plc, Alhaji Aliko Dangote, told the shareholders that the year 2019 was a strong year given the tough business environment across most of its operating geographies, disclosing that the Group recorded volumes of 23.7 million metric tons and revenues of N891.7 billion.

He said: “We recorded a strong EBITDA margin of 44.3%. As a result of this performance, the Board has recommended for your approval a dividend of N16.00 per ordinary 50 kobo share.”

Speaking on the local Nigerian operations, the foremost African industrialist said, “Nigeria’s cement market grew slightly in 2019.

We estimate that total market consumption was up between 2%-3% on the 20.7Mt estimated in 2018.”

Dangote explained that the modest performance was in spite of the fact that the market generally was impacted negatively by the disruptions related to the 2019 election cycles, heavy rains and the loss in land export volumes due to the border closure.

“Dangote Cement’s Nigerian operations remained at 14.1Mt in 2019, including export sales of 0.45Mt. Domestic sales in Nigeria were nearly 13.7Mt, compared to 13.4Mt in 2019.

This implies a 2% growth mirroring the estimated GDP growth for the year. However, land exports reduced to 0.45Mt from 0.7Mt for the full year owing to the border closure in the last few months of 2019.

“The Bag of Goodies promotion, launched in July, drove strong increases in our Nigerian volumes in the third quarter”, Dangote stressed.

The industrialist maintained that the innovative marketing effort enabled the company to maintain its market share despite the 4.5Mt new capacity, which came into the market during the year.

He alluded to the new feat by Dangote Cement in commencing export of clinker via shipping from the Apapa and Onne ports to West and Central Africa, adding that the management was encouraged by the performance of its offshore operations.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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