Dangote Cement’s African projects already supporting growth — CEO

image

Dangote Cement
The Chief Executive Officer, Dangote Cement Plc,
Mr. Onne van der Weijde, has said the cement
producer’s expansion projects in Africa have
started contributing to its revenue growth.
Weijde said this following the release of the
company’s unaudited results for the first quarter of
2015, which showed significant increase in profit.
The group is executing an expansion plan in 16
African countries outside Nigeria, which is
expected to greatly increase its market share and
returns when completed.
With some of the projects under the expansion plan
yet to be completed, Weidje said the impacts of
several of them were already being felt.
“Our African projects are now beginning to deliver
revenue growth for the Group and even at this
early stage we are seeing good potential in all the
countries into which we are expanding,” he was
quoted as saying in a statement from the group.
“Senegal has made an excellent start, Cameroon is
poised for a strong entry into an exciting growth
market and Sephaku Cement is clearly shaking up
the South African market as the first new entrant in
many years.”
He explained that although sales fell in Nigeria,
Dangote Cement improved both revenues and
margins, thanks to pricing actions in December
following the collapse of the oil price and currency
devaluation.
He added, “We are making a significant investment
to improve our logistical capabilities and I am
pleased to report a much more favorable fuel
supply in the first quarter of 2015.
“We have invested for growth in Africa and each
new factory that opens will generate good returns
for shareholders as we deliver on our promise to
become Africa’s leading cement company.”
Dangote Cement announced a gross profit of
N74.7bn for the first quarter of 2015, indicating an
increase of 10.5 per cent over the N67.63bn it
reported in the same period of 2014.
The cement giant’s unaudited results for the three
months to March 31, 2015 showed that its revenue
– supported by the maiden contributions from
non-Nigerian factories – rose by 10.8 per cent to
N114.7bn from N103.57bn in the first quarter of
2014.
Also, the net profit rose by 44.1 per cent year-on-
year to N68.6bn from N47.62bn, while the earnings
per share surged by 45.7 per cent to N4.09.
The group’s cement sales volumes were up by 3.4
per cent to 3.8 million tons driven by contributions
from South Africa, Senegal, Cameroon and new
lines in Nigeria.
According to the statement, Dangote Cement plants
are now operational in Zambia and Ethiopia. The
new plants are expected to impact positively on the
financials of the cement giant.
Dangote Cement is Africa’s leading cement
producer with three plants in Nigeria and recently
opened factories in South Africa, Senegal and
Cameroon. It is a fully integrated quarry-to-
customer producer with production capacity of 29
million tonnes in Nigeria at the end of 2014.

Advertisements

we will get back to you shortly...!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s