Dangote sees 21% rise in revenues, but drop in profit for 3Q16

Dangote reported a revenue of NGN442bn (US$1.4bn) for the nine months ended 30 September 2016, representing a 21 per cent YoY increase from NGN365bn in 9M15.

Profit after tax fell to NG133bn from NGN157.9bn in 2015, impacted by foreign exchange issues and resulting in a much higher cost of sales, up from NGN138.694bn in 9M15 to NGN231.684 in 9M16.

The Managing Director of Dangote Cement, Onne Van der Weijde said the management is confident of delivering strong growth this year despite the challenging economic conditions facing Nigeria and the rest of Africa. The company achieved particularly strong sales growth in its domestic market of Nigeria but expected growth in the final quarter to be more modest due to the high base experienced in 4Q15 and the price rise introduced in September 2016.

The foreign exchange constraints have also resulted in Dangote reviewing the pace of its foreign expansion and Mr Van der Weijde said a longer-term building programme will enable a more measured approach that balances the company’s growth ambitions with the current difficulties of obtaining foreign currency.