Africa’s biggest cement producer, Dangote Cement Plc, has reported a surge in sales from Nigeria.
The company told the the Nigerian Stock Exchange that revenue for the first quarter through March increased 3.8% to 249.2 billion naira (US$647 million) while net income remained little-changed at 60.6 billion naira from 60.3 billion naira. Sales from Nigeria rose 5.6% to 179.3 billion naira.
Despite the coronavirus pandemic, the company experienced growth across the board at the beginning of the year, as well as record sales in Nigeria and good profit margins in its Pan-African operations, Michel Puchercos, Chief Executive Officer said.
Movement restrictions to prevent the spread of COVID-19 have been in place in most economies on the continent, including Nigeria, South Africa, Congo, Ghana, Sierra Leone and Senegal, where Dangote has operations. This coincided with a fall in crude prices that hurt commodity-dependent countries. The company has reported that its sales were affected by lockdown in South Africa towards the end of March. The company has seen lower sales volumes in April compared to last year, and hopes to start exporting clinker to West and Central Africa to boost sales.
Due to reduced government spending on capital projects and subdued private sector investment, CSL Research has noted that growth in revenue will be weaker in the coming months.
This article was first published here: https://bloom.bg/36tSMw2
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