Dangote Cement reports rise in group revenue for 2018

Dangote Cement reports rise in group revenue for 2018
28 February 2019

Nigeria’s Dangote Cement announced a 11.9 per cent YoY rise in group revenue to NGN901.2bn (US$2.48bn) from NGN805.6bn for the full-year 2018 period. The results were driven by a 11.4 per cent increase in Nigerian cement sales to 14.178Mt and a 9.5 per cent higher revenue per tonne for pan-African operations.

Group EBITDA advanced 12.1 per cent to NGN435.26bn, compared with NGN388.14 of 2017. Meanwhile, total cement sales were up 7.4 per cent to 23.535Mt.

"This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election," said Joe Makoju, group CEO.

"Although pan-African volumes were unchanged in 2018, I am confident that we will see an increase in 2019, driven by higher volumes in Tanzania, Ethiopia, Congo and Sierra Leone. Now that we have gas turbines operating in Tanzania we will also see increased profitability in the pan-Africa region and this will help to improve overall group margins," said Mr Makoju.

Revenue from the company’s Nigerian operations grew 11.9 per cent to NGN552.4bn from NGN618.3bn. Sales to domestic customers in the country rose by 11.7 per cent from 12Mt to 13.4Mt in 2018, with the remaining 0.77Mt exported.

Company estimates show that total market consumption was 20.7Mt, up 11 per cent on the 18.6Mt sold in 2017. Market growth was stronger in the 7M18, before unusually heavy rain and flooding affected demand in key regions, which depressed sales from mid-August to mid-November, according to a press release.

Pan-African cement volumes were broadly consistent YoY at 9.37Mt against 9.36Mt in 2017. Lower volumes in Ethiopia, Ghana and Tanzania were offset by increases in Zambia and Senegal. The sector’s revenue constituted 31.4 per cent of the group’s total at NGN283.26bn.

Published under Cement News