TRACKING>>…realises N200bn profit
Dangote Cement Plc investment across Africa is bearing the desired results as Pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt.
According to the full year report released on the floor of the Nigerian Stock Exchange, Dangote Cement Plant, Mtwara, Tanzania, recorded an increase of 94 per cent increase in volume within the review period.
Dangote Cement Plant, Pout, Senegal, put up a remarkable performance with sales up more than 100 per cent of rated capacity.
The board has proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming annual general meeting (AGM).
Speaking on the result, Group Chief Executive Officer, Dangote Cement, Joe Makoju, said: “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets. The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.
“Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements.
“As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production. Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. I wish Mr. Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. it is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
In addition, Dangote Cement has 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).
Dangote Cement posted a profit after tax of N200.521 billion for the financial year ended December 31, 2019 as against a profit of N390.325 billion posted in 2018, representing a drop of 48.63 per cent.
Profit before tax stood at N250.479 billion from N300.806 billion posted in 2018, accounting for a drop of 16.73 per cent. Revenue was N891.674 as against N901.213 billion in 2018.
