Group volumes maintained against difficult conditions in key markets
Lagos, 29th July 2019: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the six months ended 30th June 2019.
- Group revenue down 3.0% to ₦467.7B
- Group EBITDA down 11.4% to ₦217.9B, 46.6% margin
- Nigeria EBITDA down 11.6% to ₦200.6B, 61.1% margin
- Pan-African EBITDA down 7.5% to ₦23.9B, 17.1% margin
- EPS up 6.2% to ₦7.01 on lower tax charge
- Net debt of ₦318.6B after dividend payment of ₦272.6B
- Group volumes maintained at 12.3 million tonnes
- Nigerian volumes down 2.8% to 7.6 million tonnes, affected by election delays and competition
- Pan-African volumes up 2.7% to nearly 4.7 million tonnes, despite challenges in South Africa and Ethiopia
Joe Makoju, Group Chief Executive Officer, said:
“Group sales volumes were only slightly down on last year and this was a solid performance against the impact of delayed elections and increased competition from new capacity in Nigeria, as well as operational and economic challenges in key territories such as Ethiopia and South Africa. However, we saw a stronger performance from Tanzania, which is now running on gas turbines, and also from Senegal, where our sales volumes are more than 100% of our rated capacity.
Our variable costs continue to be affected by foreign exchange effects as well as higher fuel and distribution costs. In response, we have taken action to enhance margins in Nigeria and are confident that our increased promotional activity in our home market will help to drive sales volume growth in the second half of the year, helped by an increase in infrastructure investment that we believe will be a major focus for government in the coming months.
Our financial strength was demonstrated by the generous dividend payment we made in June and the continuing success of our Commercial Paper programme, which raised a total of ₦91B in the second quarter. This financial strength continues to underpin our position as Africa’s leading cement company, despite the challenging conditions we have seen so far in 2019, and our actions have positioned us strongly for growth when economic conditions recover in key markets.”
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)./p>