Half-year report: Dangote Cement raises sales volume by 12.6 percent

Stella Mbah | Monday, 31 July 2017 2:42pm | business

source: Dangote.com

Africa’s largest cement producer, Dangote Cement, said that it increased its sales volume across the continent by 12.6 percent in the first half of the year.

According to the company’s half-year results on the Nigerian Stock Exchange website, the company raised its revenues from its operations in Nigeria by 34.5 percent to ₦291.4 billion while its activities in Africa generated revenue of ₦124.4 billion from ₦76.0 billion.

The 63.7 percent growth in the company’s continental revenue is due mainly to increased volumes of sales across many African markets and foreign exchange gains when converting the sales from other country’s local currency to naira.

The company’s result showed that a total of 1.1million ‘metric tons of cement was sold in Ethiopia, almost 0.7 million metric tons sold in Senegal, 0.6 million metric tons sold in Cameroon, and 0.5 million tons in Ghana.

Also, 0.4 million metric tons of cement was sold in Tanzania and 0.3 million tons in Zambia while sales volumes from Nigerian operations fell from 8.8Mt to 6.9Mt, occasioned by the onset of rains which stalled many construction projects. In total, about 4.7 million metric tons of cement were sold, with Sierra Leone making a 53Kt maiden contribution.

Speaking on the company’s performance, its Chief Executive, Onne van der Weijde, expressed satisfaction that the company’s revenues have continued to grow despite low sales from the Nigerian operations, noting that the revenues grew on the strength of sales from other African operations.

“Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria. We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs,” he said.

He added that the company’s operations in other African countries are growing as the company continues to increase its market share. “We saw our the first sales from Sierra Leone in the first quarter and our new plant in the Republic of Congo will be in production at the end of July, further increasing our footprint across Africa and strengthening our position as its leading manufacturer of cement.”