Dangote Cement PLC shares Q2 Results
Published by David Bizley,
Editor
World Cement,
Financial highlights
- Group revenue up 44.8% to ?690.5B
- Group EBITDA up 61.0% to ?351.1B; 50.8% margin
- Pan-Africa EBITDA up 49.8% to ?47.2B; 23.8% margin
- Profit after tax up 51.9% to ?191.6B
- Net debt of ?400.9B; net gearing of 49.8%
Operating highlights
- Group sales volumes up 26.1% to 15.3 Mt
- Nigeria volumes up 33.2% to 9.9 Mt
- Double-digit volume growth in Pan-Africa of 15.5%
- Recommenced clinker exports from Nigeria in Q2
- Two clinker shipments from our Nigeria terminals; one from Apapa and one from Onne
Capital structure
- Successful issuance of Series 1 Fixed Rate Senior Unsecured Bonds under DCPs new ?300 billion Multi-Instrument Issuance Programme.
- Buy-back programme renewal approved by the Securities and Exchange Commission
- Dividend of ?16.00 per share was paid in May 2021, paid one month ahead compared to previous years
Michel Puchercos, Chief Executive Officer, said:
“We are pleased to report a solid set of the results for the first half of the year. Our performance reflects the strong demand across the Group, with increases in revenue and profitability, compared to the same period last year. This strong intrinsic performance is magnified by the lower Q2 2020 results due to the effect of COVID-19. The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.
We also continue to maintain a strong focus on health and safety measures in all our engagements with stakeholders. We have learned a lot over the past year on how to mitigate risks associated with COVID-19. We remain committed to protecting our team members and communities by being fully compliant with local laws and regulations.
Our Nigerian business recorded volume growth of 33.2% in H1 2021 at 9.9Mt, with a record EBITDA of ?311.2B, up 60.1%. We recommenced our clinker exports in the second quarter after taking the strategic decision to pause them. This was to ensure we met the historic volume growth in the Nigerian domestic market since mid-2020. We are improving the output of our existing and new assets and I am happy to announce that our 3Mt Okpella plant is on track to come on stream in the next quarter.
Our Alternative Fuel project which focuses on leveraging waste management solutions, reducing CO2 emissions and sourcing material locally is at an advanced stage. The procurement and installation of the necessary equipment across all plants is ongoing.
In addition, Dangote Cement became the first Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy. We believe that adopting XBRL reporting will strongly benefit Dangote Cement’s existing and potential investors. It represents another step in our continuing efforts to modernise and enhance transparency of, and access to, companies’ disclosures.
As Africa’s leading cement producer, we are leading the way with our commitment to sustainability and best practices. We are driven by the goal of achieving the highest level of governance and building a sustainable brand for all stakeholders. Transparency and consistency are at the core of every part our business culture.”
A full breakdown of the results can be found here.
Read the article online at: https://www.worldcement.com/africa-middle-east/04082021/dangote-cement-plc-shares-q2-results/
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