Growth across board despite initial impact of COVID-19
Record Pan-African EBITDA margin of 21%
Record quarterly revenue in Nigeria
Lagos, 22nd May 2020: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the three months ended 31st March 2020.
- Group revenue up 3.8% to ₦249.2B
- Group EBITDA up 2.2% to ₦114.2B; 45.8% margin
- Pan-Africa EBITDA up 23.4% to ₦14.6B; 20.9% margin
- Profit before tax up 11.5% to ₦88.1B
- Earnings per share up 1.7% to ₦3.60
- Net debt of ₦191.4B
- Group cement sales volumes down 0.6%
- Nigerian volumes up 0.7% at 4.0Mt; +5% when considering domestic sales only
- Record high Nigerian quarterly revenue at ₦179.3B, up 5.6%
- Total lockdown in South Africa owing to COVID-19 affected Pan-Africa sales at the end of March
- In April, Dangote Cement completed the successful issuance of ₦100B series 1 Bond due April 2025 under the ₦300B Bond Programme at a 12.5% interest rate
- Bond issuance was oversubscribed
- Largest ever corporate bond issuance in the Nigerian debt capital market
Michel Puchercos, Group Chief Executive Officer, said:
“From the beginning of the COVID-19 pandemic, we have proactively deployed all recommended measures to protect the health and well-being of our employees, customers, suppliers and communities. As such, we have implemented several rigorous protocols in all our operations across the continent. We are closely monitoring all markets according to the guidance provided by the authorities in each country. We continue to provide superior services and deliver high quality products to our customers.
2020 started strongly, with growth across the board despite the early effects of the COVID19 pandemic. We achieved a record high quarterly EBITDA margin in Pan-Africa and a record high quarter in Nigeria, with revenues of ₦179B and domestic volumes at 4.0Mt.
In April, Dangote Cement successfully raised ₦100B series 1 Bond from the Nigerian Debt Capital Market despite the current challenging environment. This illustrates investors’ continuous confidence in Dangote Cement’s strategy. This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria. It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market. “
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).