Dan­gote Ce­ment earns N292bn rev­enue

Daily Trust - - NEWS -

Africa’s lead­ing ce­ment pro­ducer, Dan­gote Ce­ment Plc has re­ported a rev­enue of N292 bil­lion in the sec­ond quar­ter ended June 30th 2016 in­di­cat­ing an in­crease of 20 per­cent over N242 bil­lion posted in the cor­re­spond­ing pe­riod in 2015.

Ac­cord­ing to the re­ports filed with the Nige­rian Stock Ex­change (NSE), the com­pany’s Profit for pe­riod stands at N106.3 bil­lion rep­re­sent­ing a slight de­cline by 3 per­cent from 123.1 bil­lion naira de­clared a year ear­lier.

Chief Ex­ec­u­tive Of­fi­cer of the ce­ment com­pany Onne Van der Wei­jde in a state­ment said “We have achieved a com­mend­able re­sult, given the very chal­leng­ing sit­u­a­tion in our main mar­ket and gen­eral eco­nomic weak­en­ing across Africa.”

He said the man­age­ment would con­tinue to re­spond to the pre­vail­ing op­er­at­ing en­vi­ron­ment with strate­gi­cally thought mea­sures for the or­ga­ni­za­tion to main­tain its lead­er­ship and prof­itabil­ity.

On ex­pan­sion, he added, “While the com­pany re­mains com­mit­ted to its am­bi­tious plans, we are tak­ing a more mea­sured ap­proach to the roll-out of new ca­pac­ity across Africa”.

Dan­gote Ce­ment has more than dou­bled pro­duc­tion ca­pac­ity since 2013 and said in April it may in­crease ce­ment ca­pac­ity by a fur­ther 77 per­cent by the end of 2019. For­eign-ex­change con­straints in Nige­ria have prompted the com­pany to re­con­sider the pace of its ex­pan­sion and now be­lieves a five-year build­ing pro­gram is more ap­pro­pri­ate, it said.

Earn­ings in the pe­riod were af­fected by lower sell­ing prices, higher fuel costs and the fact that sev­eral new plants are still in less-ef­fi­cient start up phases, the com­pany said.

Ce­ment sales vol­umes in the pe­riod in­creased 60 per­cent, bol­stered by record vol­umes in its home mar­ket, where the com­pany an­nounced a price cut last Septem­ber, as well as new plants else­where on the con­ti­nent. The de­val­u­a­tion of the naira will af­fect costs in the coun­try and Dan­gote will seek to pro­tect its profit mar­gins, Van der Wei­jde said.

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