Lagos, 28th April 2017: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the three months ended 31st March 2017.
Financial Highlights (vs Q1 2016)
- Group revenue up 48.1% to ₦208.2B
- Group EBITDA up 42.3% to ₦103.0B, 49.5% margin
- Nigeria EBITDA up 49.0% to ₦98.7B, 64.8% margin
- Nigeria EBITDA per tonne up 78.4%
- Pan-African EBITDA up 2.2% to ₦7.5B, 12.7% margin
- Earnings per share up 36.2% to ₦4.25
- Net debt of ₦180.2B, down from ₦240.8B at the end of 2016
- Higher revenue per tonne offsets 6.4% fall in Group volumes
- Pan-Africa sales up 21.0%, with strong performance across all regions
- Significant use of own-mined coal in Nigeria, replacing imports and LPFO
- Sierra Leone makes maiden contribution to sales
Onne van der Weijde, Chief Executive Officer, said:
“Dangote Cement produced record financial results in the first three months of 2017. Despite lower Group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4% more EBITDA per tonne than the same quarter last year.
We have now begun sourcing a significant amount of coal from Nigerian mines owned by our parent, Dangote Industries, and this has not only helped us to improve margins but also reduced our need for imported coal and the foreign currency needed to buy it.
Our Pan-African operations performed strongly, increasing sales volumes by 21.0% and revenues by 74.2%. Pan-African operations now contribute nearly 28% of Group revenues and we are pleased to report a good start for our new import facility in Sierra Leone. We will begin operations in Congo in the coming weeks, further consolidating our position as Sub-Saharan Africa’s leading supplier of 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 a net exporter of cement serving neighbouring countries.
In addition, we have invested almost $3B to build manufacturing plants and import/grinding terminals across Africa. Our operations are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (3.3Mta), Tanzania (3.0Mta), Zambia (1.5Mta).