Dangote Cement, Africa’s largest cement producer, has announced its unaudited results for the six months ended June 30, 2017, posting a 12.6 per cent increase in sales volume across Africa.
The financials released on the floor of the Nigerian Stock Exchange (NSE) showed that the increase in sales volume represents a growing capture of Pan-African market as Dangote Cement continues to gain grounds.
Revenues from Nigerian operations increased by 34.5 per cent to N291.4 billion, while Pan-Africa revenue rose 63.7 per cent to N124.4 billion from N76 billion mainly due to increased volumes and foreign exchange gains when converting the sales from country local currency into naira.
Analysis of the half year result revealed that sales volumes of African operations increased by 12.6 per cent to 4.7 million metric tonnes with Sierra Leone making a 53kt maiden contribution.
Record of sales from its operations around the African continent revealed that a total of 1.1 million metric tonnes of cement was sold in Ethiopia, almost 0.7 million metric tonnes sold in Senegal, 0.6 million metric tonnes sold in Cameroon, and 0.5 million tonnes in Ghana.
Also, 0.4 million metric tonnes of cement was sold in Tanzania and 0.3 million tonnes in Zambia. Sales volumes from Nigerian operations fell from 8.8mt to 6.9mt, occasioned by the onset of rains, which stalled many construction projects.
Reflecting on the half year results, the firm’s Chief Executive Officer, Onne van der Weijde, expressed satisfaction that its revenues have continued to grow despite low sales from the Nigerian operations.
Said he: “Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria.
“We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs.”
Dangote Cement records 12.6% sales in HI, 2017
