Election delays weigh on Nigeria performance
Lagos, 26th April 2019: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the three months ended 31st March 2019.
- Group revenue down 0.8% to ₦240.2B
- Group EBITDA down 11.2% to ₦111.8B, 46.5% margin
- Nigeria EBITDA down 10.4% to ₦103.4B, 60.9% margin
- Pan-African EBITDA down 9.3% to ₦11.9B, 16.9% margin
- Net debt of just ₦53.5B, or 0.12x annualised Q1 2019 EBITDA
- Group volumes up 2.3% to 6.3 million tonnes
- Nigerian operations deliver nearly 4.0 million tonnes, third-highest quarterly volume despite loss of weekends to elections
- Pan-African volumes up 4.8% to 2.3 million tonnes
Joe Makoju, Mni, OFR, Group Chief Executive Officer, said:
“It was a challenging quarter with delays to the Nigerian elections that impacted sales, increased discounting in Nigeria and tougher market conditions in South Africa and other Pan-African markets. In addition, our variable costs were hit by foreign exchange effects, as well as higher fuel and distribution costs. Unrealized foreign exchange losses driven by the variation of local currencies versus US Dollar also impacted negatively our financial results. Combined with the muted volume growth across our operations, all of these factors contributed to a slight fall in revenues and a larger impact on profitability.
Despite these challenges, we had our third-best volume quarter in Nigeria and increased Pan-African sales volumes by nearly 5%. We are optimistic that the Nigerian market will accelerate when the government and private enterprise focus on infrastructure and economic development and we have taken steps to protect our margins by introducing a price increase at the beginning of April.
Our balance sheet remains strong with a low level of net debt resulting from continuing strong cash generation. This financial strength is what enables us to maintain our position as Africa’s leading cement company, despite the challenging conditions we have seen so far in 2019.”
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>