Dangote Cement Plc grew its sales by about 18 per cent to N950.8 billion in the first half with net profit rising by 3.8 per cent to N178.6 billion.
The six-month report for the period ended June 30, 2023 showed that the cement group’s total sales volume was 13.4Mt. Pan-African sales volume rose to 5.4 metric tonnes. The pan-African region included all the cement plant’s operations outside Nigeria. Sales volume for pan-African operation was up 11.6 per cent compared to 4.9Mt in first half 2022. The total pan-African volume accounts for 40.4 per cent of group volumes in the half year.
The report showed that the pan-African operations performance was attributable to robust demand, particularly from Ethiopia, Senegal, Zambia, and Congo. Hence pan-African revenues grew by 81.8 per cent to N336.4 billion. Group revenue rose by 17.7 per cent to N950.8 billion. Recurring profit after tax was up by 37.4 per cent to N292.2 billion while profit after tax rose by 3.8 per cent to N178.6 billion.
Chief Executive Officer, Dangote Cement Plc, Arvind Pathak, described the results as heartwarming noting that the group’s Nigeria operations achieved a 22.6 per cent recovery in sales over the first quarter, which was impacted by the general elections and the cash crunch.
He, however, pointed out that steep currency devaluation in mid-June slowed volume recovery and increased the already inflated operating cost.
“We navigated the tough terrain, thanks to our strong operational framework and rigorous focus on cost management. I am pleased at the remarkable improvement witnessed in our pan-Africa operations,” Pathak said.
He added that the 0.4Mta grinding plant in Ghana has commenced operation while the completion of a 1.5Mta grinding plant in Cote d’Ivoire is on track.
“We will continue to focus on our strategic growth priorities, hinged on our vision of transforming Africa and building a sustainable future. I am optimistic that our business remains resilient and well positioned to overcome unforeseen macroeconomic headwinds,” Pathak said.
Dangote Cement, Africa’s leading cement producer with 52.0Mta capacity across Africa, is a fully integrated quarry-to-customer producer. It has a production capacity of 35.25Mta in the home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta.
Dangote Cement also has operations in Cameroon, 1.5Mta clinker grinding; Congo, 1.5Mta; Ghana, 2.0Mta import; Ethiopia, 2.5Mta; Senegal, 1.5Mta; Sierra Leone, 0.5Mta import; South Africa, 2.8Mta; Tanzania, 3.0Mta and Zambia, with 1.5Mta.
Credit: thenationonlineng.net
