Dangote Cement Plc shares results for nine months ended 30th September

Financial Highlights

• Group revenue up 12.0% to 761.4 billion naira
• Group EBITDA up 17.1% to 355.0 billion naira; 46.6% margin

• Record high Pan-Africa EBITDA up 37.9% to 52.1 billion naira; 22.4% margin
• Profit before tax up 37.6% to 272.0 billion naira
• Earnings per share up 34.6% to 12.25 naira
• Net debt of 262.4 billion naira, gearing of 32%

Operating Highlights

• Group sales volumes up 6.6% to 19.2 million t
• Nigeria volumes up 10.2%; up 39.9% in the quarter driven by strong demand and pull effect of the National Consumer Promotion
• Pan-African volumes up 3.7% despite impact of COVID-19 in Q2

Export Strategy

• Six clinker vessels exported in the quarter from Nigeria to Cameroon via the Apapa export terminal (2 vessels per month)
• Including maiden shipment in June, seven clinker vessels have been exported to date
• On track to commission the Port Harcourt export terminal before the end of the year
• Cement export by sea via Lekki export terminal being explored
• Land cement export restarted amidst gradual re-opening of borders

Michel Puchercos, Group Chief Executive Officer, said:

“I am delighted to report that Dangote Cement experienced its strongest quarter in terms of EBITDA and strongest third quarter in term of volumes. Despite a challenging environment, group volumes for the nine months were up 6.6% and Group EBITDA was up 17.1%, at a 46.6% margin.”

“This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging Q2. In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads. Sales volumes in Nigeria were up 40% in the quarter and Pan-Africa reached a record high EBITDA margin of 24% in the quarter. In the quarter, our Group net profit was up 135.1%.”

“We continue to focus on our export strategy and are on track to ensure West and Central Africa become cement and clinker independent, with Nigeria as the main supply hub. Clinker exports have steadily been ramping up in Q3 after our maiden shipment in June 2020, whilst land exports have also resumed.”

“Dangote Cement’s strategy to offer high quality products at competitive prices is meeting customers’ expectations in Nigeria and across the continent, where we continue to deploy excellent marketing initiatives and operational excellence across the continent.”

“We remain committed to protecting our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”

Read the article online at: https://www.worldcement.com/africa-middle-east/09112020/dangote-cement-plc-shares-results-for-nine-months-ended-30th-september/