Lagos, 28th February 2017: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces audited results for the year ended 31st December 2016.
- Revenue up 25.1% to ₦615.1B
- EBITDA of ₦257.2B only slightly lower than 2015
- Nigeria EBITDA of ₦242.0B at 56.8% margin on lower selling price
- Pan-African EBITDA of ₦26.5B at 13.6% margin with some plants still ramping up
- Earnings per share up 4.5% to ₦11.34
- Net debt of ₦240.8B, net gearing of 30.1%
- Recommended dividend of ₦8.5, UP 6.25%
- Dangote Cement’s export sales transform Nigeria into net exporter
- Group cement volumes up 25.0% to 23.6Mt
- Record volumes from Nigerian operations, up 13.8% to 15.1Mt including exports
- Rest of Africa sales volumes up 54.0% to 8.6Mt
- Strong market shares achieved across Africa
- Coal now operational on all Nigerian lines
- Sierra Leone commenced sales in February 2017, Congo expected operational in April
Onne van der Weijde, Chief Executive Officer, said:
“It was a challenging year for many African economies but we achieved sales and revenue growth of 25% and consolidated our position as Africa’s leading producer of cement. Nigerian sales increased by 11% to nearly 14.8Mt, at a growth rate far higher than the country’s GDP, which fell in 2016.
We exported nearly 0.4Mt into neighbouring countries and in doing so, we achieved a great milestone by transforming Nigeria into a net exporter of cement. This is a remarkable achievement, given that only five years ago, in 2011, Nigeria was one of the world’s largest importers, buying 5.1Mt of foreign cement at huge expense to our balance of payments. We will increase our exports substantially in 2017.
Our Pan-African operations continued to perform well and we sold nearly 8.6Mt of cement outside of Nigeria, which is 54% more than 2015. Despite some local and temporary disruptions in Ethiopia and Tanzania, we strengthened our market share in every country. We will soon begin operations in Congo and Sierra Leone, widening our footprint to ten countries.
The new year has started well and we expect much higher profitability in Nigeria in 2017, even though we may not see the volume growth we achieved in 2016. I am confident that we will deliver an even stronger performance in 2017 as we increase market share and extend our reach across Africa.”
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with nearly 44Mta capacity across three plants in Nigeria and recently opened factories in Cameroon, Ethiopia, Senegal, South Africa, Tanzania and Zambia.
We are a fully integrated quarry-to-customer producer with production capacity of 29.25Mta in Nigeria. Our Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta. The Gboko plant in Benue state has 4Mta. We plan to build new factories in Ogun State (3-6Mta) and Edo State (6.0Mta). Through our recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and is transforming the nation into an exporter serving neighbouring countries.
In addition, we are investing several billion dollars to build manufacturing plants and import/grinding terminals across Africa. We have operations in Senegal (1.5Mta), South Africa (3.3Mta), Cameroon (1.5Mta), Ghana (1Mta import facility), Ethiopia (2.5Mta), Zambia (1.5Mta) and Tanzania (3.0Mta). We will open a new 1.5Mta integrated factory in Republic of Congo and an import facility in Sierra Leone later in 2016. We are planning new capacity in Nigeria, Kenya, Nepal, Zambia, Ethiopia, Cameroon, Zimbabwe, Ghana, Cote D’Ivoire and Liberia.