Dangote - November 2013

Sales growth at Dangote Cement continues to outpace the Nigerian cement market with group sales volumes up 29.5 per cent to 9.95Mt, compared to the same period last year. Pre-tax profit for the nine-month period rose 42.6 per cent to NGN151.7bn (US$957m), while EBITDA grew 35.9 per cent to NGN181.1bn (US$1142m). Consolidated group revenue was up 28.7 per cent to NGN289bn (US$1822m) and gross profit reached NGN189.4bn (US$1195m), up 39.4 per cent.

Following a deferred tax credit of NGN4.4bn (US$28m), profit for the year was NGN156.1bn (US$985m). Earnings per share rose by 46.1 per cent to NGN9.19 per share, compared to NGN6.29 in 9M12. Administrative expenses rose 46.4 per cent due to higher depreciation and salaries, while selling and distribution expenses jumped 67.5 per cent as a result of higher volumes and increased direct deliveries.

The total Nigerian cement market has grown by 13.6 per cent to nearly 16Mt. With the recently published Federal budget allocating NGN1620bn (US$10,222bn) for capital spending, of which NGN497bn (US$3136bn) has been earmarked for critical infrastructure, cement demand shows no sign of slowing down. According to Dangote’s latest financial report, “The outlook for Nigeria remains strong and we believe that its economy is capable of sustaining double-digit growth in cement sales as investments are made in infrastructure and housing.”

Dangote’s flagship cement plant at Obajana increased sales in 9M13 by 41.9 per cent to nearly 5.9Mt, while its 6Mt plant in Ibese sold more than 3Mt in the nine-month period, up over 46 per cent on the same period last year. The reopened Gboko plant saw sales drop over the first nine months of this year due to its temporary mothballing, but work is now underway on a new grinding mill which will add up to 1Mt of extra capacity.

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