Resilient 9M 2020 results boosted by a very strong third quarter
Record high quarterly EBITDA in Nigeria and Pan-Africa
Earnings per share up 34.6%
Fulfilling our export strategy
Lagos, 6th November 2020: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the nine months ended 30th September 2020.
- Group revenue up 12.0% to ₦761.4B
- Group EBITDA up 17.1% to ₦355.0B; 46.6% margin
- Record high Pan-Africa EBITDA up 37.9% to ₦52.1B; 22.4% margin
- Profit before tax up 37.6% to ₦272.0B
- Earnings per share up 34.6% to ₦12.25
- Net debt of ₦262.4B, gearing of 32%
- Group sales volumes up 6.6% to 19.2 million tonnes
- Nigeria volumes up 10.2%; up 39.9% in the quarter driven by strong demand and pull effect of the National Consumer Promotion
- Pan-African volumes up 3.7% despite impact of COVID-19 in Q2
- 6 clinker vessels exported in the quarter from Nigeria to Cameroon via the Apapa export terminal (2 vessels per month)
- Including maiden shipment in June, 7 clinker vessels have been exported to date
- On track to commission the Port Harcourt export terminal before the end of the year
- Cement export by sea via Lekki export terminal being explored
- Land cement export restarted amidst gradual re-opening of borders
Michel Puchercos, Group Chief Executive Officer, said:
“I am delighted to report that Dangote Cement experienced its strongest quarter in terms of EBITDA and strongest third quarter in term of volumes. Despite a challenging environment, Group volumes for the nine months were up 6.6% and Group EBITDA was up 17.1%, at a 46.6% margin.
This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging Q2. In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads. Sales volumes in Nigeria were up 40% in the quarter and Pan-Africa reached a record high EBITDA margin of 24% in the quarter. In the quarter, our Group net profit was up 135.1%.
We continue to focus on our export strategy and are on track to ensure West and Central Africa become cement and clinker independent, with Nigeria as the main supply hub. Clinker exports have steadily been ramping up in Q3 after our maiden shipment in June 2020, whilst land exports have also resumed.
Dangote Cement’s strategy to offer high quality products at competitive prices is meeting customers’ expectations in Nigeria and across the continent, where we continue to deploy excellent marketing initiatives and operational excellence across the continent.
We remain committed to protecting our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with nearly 48.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, we have a production capacity of 32.25Mta in our home market, Nigeria. Our Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five 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).