***As Clinker, Cement Exports Rise 87.2%
By Aduragbemi Omiyale
Despite the significant hike in the prices of cement brands in Nigeria between January and March 2024, the local demand for Dangote Cement increased by 26.1 per cent to 4.6Mt and the overall group volume rose by 12.3 per cent to 7.0Mt, ostensibly due to the confidence consumers have in the product.
Also, in the period under review, the firm increased its clinker and cement exports by 87.2 per cent to 264kt, thanks to the strategy of the management of Dangote Cement Plc to intensify its export business.
In a statement in reaction to its financial statements for the first three months of this year, the cement maker stated that it dispatched seven ships of clinker from Nigeria to Ghana and Cameroon.
“Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 per cent to 4.6Mt in the quarter.
“Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1 per cent to 2.7Mt, buoyed by increased sales in Zambia and Congo.
“Despite elevated cost pressures, increased borrowing costs, and a further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively,” the chief executive of Dangote Cement, Mr Arvind Pathak, stated.
“During the quarter, we intensified our emphasis on exports, dispatching seven ships from Nigeria to Ghana and Cameroon.
“As a result, our Nigerian exports surged by 87.2 per cent, reflecting our commitment to expanding our presence in regional markets and capitalising on our export-to-import strategy.
“We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future,” he added.
Business Post reports that in the first quarter of this year, the organisation recorded revenue of N817.4 billion, as profit after tax inched up by 2.9 per cent to N112.7 billion, with earnings per share closed the quarter at N6.68 representing an increase of 3.7 per cent.
As part of its sustainability programme, Dangote Cement commissioned 10 of the 17 Alternative Fuel Projects across the group.
Mr Pathak added that, “Group revenue more than doubled to N817.4 billion, while Group EBITDA rose 66.6 per cent to N309.5 billion. Profit After Tax was up 2.9 per cent at N112.7 billion.
“These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders.
Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa. A fully integrated quarry-to-customer producer, Dangote Cement has a production capacity of 35.25Mta in 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.
Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
In addition, the company has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mta clinker grinding and import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
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