Nigeria’s largest cement producer, Dangote Cement, has announced a gross profit of N74.7 billion for the three months ended March 31, 2015. This represents an increase of 10.5 per cent over N67.63 billion recorded in the same period in 2014.
According to the cement giant’s unaudited results for first quarter of 2015, revenues rose by 10.8 to N114.7bn compared to N103.57bn in the corresponding in 2014. The improvement in the first results was buoyed by with maiden contributions from non-Nigerian factories, the company said.
Net profit was up 44.1 per cent to N68.6bn in contrast to N47.62bn in 2014 while earnings per share grew by 45.7 per cent to N4.09.
Group cement sales volumes was up by 3.4 per cent to 3.8 million tonnes driven by contributions from South Africa, Senegal, Cameroon and new lines in Nigeria. The margins from Nigeria increased by new pricing, improved gas supply and more use of coal. Dangote Cement Plants are now operational in Zambia and Ethiopia. The new plants are expected to impact positively on the financials of the cement giants.
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 favourable 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.