Dangote Cement has announced its unaudited results for the six months ended 30 June 2015. Revenue was up 15.9% to N242.2 billion, while gross profit improved to N157.7 billion, a 65.1% margin. EBITDA was also up 14.0% to N147.5 billion and net profit grew 27.6% to N121.8 billion. Net debt increased to N257.6 billion from N222.0 billion at the end of 2014.
The group has had a busy 1H15 and now has 40 million t of capacity operational across Africa with the launch of plants in Cameroon, Zambia and Ethiopia. Group cement sales volumes increased by 13.7% to 8.1 million t, with 22% of cement volumes shipped outside Nigeria. The group reports strong contributions from South Africa and Senegal, with good gains in market share. In Nigeria, margins were improved by new pricing, improved gas supply and the increased use of coal. The Gboko plant was reoped temporarily in April 2015 to meet local demand.
Chief Executive, Onne van der Weijde, said: “Our new plants have made excellent starts across Africa in the first half of 2015 and our operations now stretch from Senegal across to Ethiopia and down to South Africa, making us a truly Pan-African leader in cement.
“Our strategy has been to enter markets with higher-quality cement produced at lower-cost factories and as a result we are building strong shares in key African markets, despite well-established competition. The increasing diversity of our business is demonstrated by the fact that 22% of volumes were sold outside of Nigeria and this has helped to offset some of the uncertainties in our home market.”
“We will build on these early successes in Africa as we continue to expand our business across the continent.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/31072015/dangote-cement-reports-increase-in-revenue-in-1h15-247/