Strong Q3 growth in Nigeria
Board to recommend share consolidation and buyback
Lagos, 30th October 2019: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the nine months ended 30th September 2019.
- Group volumes up 1.1% to 18.0 million tonnes
- Nigerian sales up 0.6% to 10.8 million tonnes, driven by strong Q3 promotional activity
- Pan-African volumes up 1.7% to 7.1 million tonnes
- Group revenue down 0.8% to ₦679.8B
- Group EBITDA down 10.1% to ₦303.2B, 44.6% margin
- EPS down 1.6% to ₦9.10
- Strong balance sheet with gearing of 0.34x
- Dangote Cement Plc’s Board of Directors has considered and agreed to recommend a share buyback and reverse share split to its shareholders.
Joe Makoju, Group Chief Executive Officer, added:
“The huge success of our Bag of Goodies promotion drove third-quarter volume growth up by 9.4% in Nigeria and this helped Group sales volumes increase by 1.1% in the first nine months of 2019.
Nigeria’s performance, augmented by strong growth in Tanzania and consistently good sales in Senegal, helped to offset some economic and operating challenges we have experienced in key territories such as Ethiopia and South Africa.
Having paid a generous dividend in June we ended the period with just ₦290B net debt and our strong balance sheet continues to allow us to pursue successful commercial paper issuance in Nigeria. With new and resurgent competition in our main market, we believe this financial strength and our focus on further improving customer service will underpin our efforts to enhance our status as Africa’s leading cement company, despite the challenging conditions that we continue to face in 2019, positioning us very favorably to serve our markets as economies pick up.
I am delighted to report that Dangote Cement was recently ranked as the second-best company from Sub-Saharan Africa in Forbes’ Global 2000 World’s Best Employers, with a global ranking of 266th. This reflects our strong commitment to building a sustainable company for all our stakeholders through the 7 Sustainability Pillars that guide the way we manage our business.
Today, the Board of Directors of Dangote Cement Plc announces that it has considered and subject to obtaining detailed advice and regulatory approvals, will recommend to its shareholders for consideration, a proposal to consolidate its share capital, as well as a share buyback programme. This decision reflects our confidence in the future of our Company and reinforces our commitment to increasing its value for the benefit of all stakeholders. We are building a business for long-term prosperity that will serve the inevitable growth in Africa’s demand for cement as its countries improve their infrastructure and housing.”
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across ten countries in Sub-Saharan 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 capacity of 12Mta, while 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 a net exporter, serving neighbouring countries that lack the limestone necessary for cement manufacturing.
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).