Nigeria’s Dangote Cement has released its unaudited results for 1Q15, showing an increase in gross profit of 10.5% y/y at N74.7 billion. Revenue rose 10.8% to N114.7 billion, up from N103.57 billion in 1Q14. Net profit was up 44.1% to N68.6 billion, while cement sales volumes increased by 3.4% to 3.8 million t, which is said to be down to the plants in South Africa, Senegal and Cameroon, as well as new lines in Nigeria.
In the company’s home country, improved gas supply and greater use of coal, together with stronger prices, contributed to increased margins. The company’s new cement plants in Zambia and Ethiopia have also entered into operation and are expected to have a positive impact on the group’s financials in subsequent quarters.
Speaking on the first quarter results, Chief Executive Officer, Dangote Cement, Mr. Onne van der Weijde, said: “Our African projects are now beginning to deliver revenue growth for the Group and even at this early stage we are seeing good potential in all the countries into which we are expanding.
“Senegal has made an excellent start, Cameroon is poised for a strong entry into an exciting growth market and Sephaku Cement is clearly shaking up the South African market as the first new entrant in many years.”
“Although sales fell in Nigeria, we improved both revenues and margins thanks to pricing actions in December following the collapse of the oil price and currency devaluation. We are making a significant investment to improve our logistical capabilities and I am pleased to report a much more favorable fuel supply in the first quarter of 2015.
“We have invested for growth in Africa and each new factory that opens will generate good returns for shareholders as we deliver on our promise to become Africa’s leading cement company.”
Dangote Cement is Africa’s leading cement producer with three plants in Nigeria and recently opened factories in South Africa, Senegal and Cameroon. It is a fully integrated quarry-to-customer producer with production capacity of 29 million tonnes in Nigeria at the end of 2014.
The Obajana cement plant in Kogi State, Nigeria, is the largest in Africa with 13.25 million tonnes capacity across four lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12 million tonnes. The Gboko plant in Benue State has 4 million tonnes capacity.
Dangote Cement has been expanding rapidly across Africa and has 29 million t of cement capacity in Nigeria alone.