Growth in Pan-African volumes, with Tanzania volumes up 94%
Nigerian volumes flat despite low domestic market growth and border closure impact on cement export
Proposed dividend of ₦16.00 per share
Lagos, 26th February 2020: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces audited results for the financial year ended 31st December 2019.
- Group revenue down 1.1% to ₦891.7B
- Group EBITDA down 9.2% to ₦395.4B; 44.3% margin
- Earnings per share (net of 2018 tax credit) down 21.3% to ₦11.79
- Dividend remained flat at ₦16.00 per share
- Net debt of ₦227.5B; net debt/EBITDA of 0.58x
- Group sales volumes up by 0.1%
- Nigerian volumes flat at 14.1Mt, despite export volume reduction due to border closure
- Nigerian market share maintained in the mid-60s
- Pan-African volumes up and reaching 9.4Mt
- Commenced usage of temporary gas power plant in Tanzania
- Shareholders have approved share buyback programme
- The registration process to deploy this programme in 2020 is ongoing and is dependent on various regulatory approvals
Joe Makoju, Group Chief Executive Officer, said:
“Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets.
The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.
Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements.
As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production. Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. I wish Mr. Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. A fully integrated quarry-to-customer producer, we have a production capacity of 29.25Mta in our home market, Nigeria. Our Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; our Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and our Gboko plant in Benue state has 4Mta. Through our recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
In addition, we have 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).