Dangote Cement posts N74.7bn profit in first quarter

Nigeria’s largest cement producer, Dangote Cement, has announced a gross profit of N74.7 billion for the three months ended March 31, 2015, indicating an increase of 10.5 percent over N67.63 billion recorded in the same period in 2014.

According to the cement giant’s unaudited results for first quarter of 2015, revenues rose by 10.8 to ₦114.7 billion compared to N103.57 billion in the corresponding in 2014.

The improvement in the first results was buoyed by with maiden contributions from non-Nigerian factories.

Net profit was up 44.1 percent to ₦68.6 billion in contrast to N47.62 billion in 2014, while earnings per share grew by 45.7 percent to ₦4.09.

Group cement sales volumes was up by 3.4 percent to 3.8 million tonnes driven by contributions from South Africa, Senegal, Cameroon and new lines in Nigeria. The margins from Nigeria increased by new pricing, improved gas supply and more use of coal. Dangote Cement Plants are now operational in Zambia and Ethiopia. The new plants are expected to impact positively on the financials of the cement giants.

“Our African projects are now beginning to deliver revenue growth for the Group and even at this early stage, we are seeing good potential in all the countries into which we are expanding,” Onne van der Weijde, chief executive officer of Dangote Cement, said.

“Senegal has made an excellent start, Cameroon is poised for a strong entry into an exciting growth market and Sephaku Cement is clearly shaking up the South African market as the first new entrant in many years.”

Van der Weijde said that although sales fell in Nigeria, the company improved both revenues and margins, thanks to pricing actions in December following the collapse of the oil price and currency devaluation.

“We are making a significant investment to improve our logistical capabilities and I am pleased to report a much more favorable fuel supply in the first quarter of 2015,” he added.

“We have invested for growth in Africa and each new factory that opens will generate good returns for shareholders as we deliver on our promise to become Africa’s leading cement company.”

Dangote Cement is Africa’s leading cement producer with three plants in Nigeria and recently opened factories in South Africa, Senegal and Cameroon.

It is a fully integrated quarry-to-customer producer with production capacity of 29 million tonnes in Nigeria at the end of 2014.

The Cement Obajana plant in Kogi state, is the largest in Africa with 13.25 million tonnes capacity across four lines, while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12 million tonnes.

The Gboko plant in Benue state has 4 million tonnes capacity.