AFRICA, Nigeria: New Capacity Lifts Dangote Cement’s Sales

Nigeria: New Capacity Lifts Dangote Cement’s Sales

The massive investment by Dangote Cement Plc (DCP)  has yielded fruits as the company’s  sale rose significantly  to 10.4 million tonnes in 2012.

DCP  increased its market share steadily during the year, averaging  57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011.
According to audited the results of the company for the  year ended December 31, 2012, the  improved  sales  led to an impressive performance, as it recorded a 14.7 per cent increase in the gross profit for the year.

The shareholders are also in for a good time as the directors recommended that they be paid  N3.00 per share for the reviewed period.

Commenting on the  performance, the  Chief Executive Officer of  Dangote Cement, Devakumar Edwin,  said a combination of some managerial strategies adopted in the face of import dumping which led to the glut in the year under review accounted for the impressive performance.

“DCP  achieved a strong increase in revenues and profitability in 2012 despite severe flooding that affected demand and a shortage of gas that affected margins.

“The group achieved several key objectives in 2012. In the first half of the year, we launched 11 million tonnes of new capacity that brought Nigeria to self-sufficiency in cement production. Because of our investments there is no more need for Nigerians to buy foreign cement.

”By the end of 2012 we were preparing to make Nigeria an exporter of cement to neighbouring countries and in the first quarter of 2013, we realised that goal, to the benefit of the Nigerian economy. Soon, we hope to be manufacturing cement in Senegal as we expand into other African countries to supply a basic but profitable commodity that is vital to Africa’s growth.

“Current trading is strong. We estimate that demand for cement in Nigeria increased by almost 16 per cent in the first quarter of 2013 and I am pleased to report that our volumes rose by substantially more than the market's growth rate in the same period. Such a strong start gives us confidence that 2013 will be a good year for Dangote Cement,” he said.

The company announced a profit after tax of N151.93 billion up from N121.4 billion of 2011 representing an increase of 25 per cent.
DCP is planning to list on the London Stock Exchange next year. Already the largest cement producer in sub-Saharan Africa,  the company  is more than doubling capacity this year to 21million metric tonnes, and wants to reach 43million tonnes in 2015.

Besides Nigeria, where it has three plants and 70 per cent market share, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.