Dangote Cement has announced a 6.6 percent increase in Group sales volume which rose from 18.02 million tonnes in 2019 to 19.21 million tonnes in the nine months.
Africa’s largest cement producer, Dangote Cement has announced a 6.6 percent increase in Group sales volume which rose from 18.02 million tonnes in 2019 to 19.21 million tonnes in the nine months ended 30th September 2020. Analysis of the company’s unaudited results for the period indicated that Nigerian operations accounted for 11.92 million tonnes, an increase of 10.2 percent compared to 10.82 million tonnes in the corresponding period in 2019. Pan-Africa operations accounted for the balance of 7.47 million tonnes, an increase of 3.7 percent over the same period in 2019.
On quarter basis comparison, Nigerian sales volumes went up by 39.9 percent in the third quarter driven by strong demand and pull effect of its Bag of Goodies Season 2 National Consumer Promotion.
The Cement Group’s revenue went up by 12 percent to ₦761.4 billion compared to N679.8 billion in 2019 with domestic operations accounting for N535.51 billion which compared to N467.88 billion up by 14.5 percent. Pan-Africa operations contributed N232.61 indicating a 9.1 percent increase over N213.20 billion in 2019.
Group Chief Executive Officer, Dangote Cement, Michel Puchercos, said, “I am delighted to report that Dangote Cement experienced its strongest quarter in terms of EBITDA and strongest third quarter in terms of volumes. Despite a challenging environment, Group volumes for the nine months were up 6.6% and group EBITDA was up 17.1%, at a 46.6% margin.
This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging Q2. In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads. Sales volumes in Nigeria were up 40% in the quarter and Pan-Africa reached a record high EBITDA margin of 24% in the quarter. “
He added, “We continue to focus on our export strategy and are on track to ensure West and Central Africa become cement and clinker independent, with Nigeria as the main supply hub. Clinker exports have steadily been ramping up in Q3 after our maiden shipment in June 2020, whilst land exports have also resumed.
Dangote Cement’s strategy to offer high-quality products at competitive prices is meeting customers’ expectations in Nigeria and across the continent, where we continue to deploy excellent marketing initiatives and operational excellence across the continent.
We remain committed to protecting our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”
In the period under consideration, Dangote Cement has exported 7 clinker vessels from Nigeria via the Apapa export terminal while plans are on track to commission the Port Harcourt export terminal before the end of the year.
Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6Mta capacity across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.
The Group has a production capacity of 29.3Mta in its home market, Nigeria. It has three cement plants in Nigeria, the Obajana plant in Kogi state, with 13.3Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and the Gboko plant in Benue state has 4Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighboring countries.
In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
Dangote Cement has a long-term credit rating pf AA+ by GCR and Aa2.ng by Moody’s due to its market-leading position, significant operational scale, and strong financial profile evidenced by the Company’s robust operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow, and low leverage.
Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, pasta, beverages, and real estate, with new multi-billion dollar projects underway in the oil and gas, petrochemical, fertilizer and agricultural sectors.