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Dangote Cement Grows Revenue by 9.5% in 2016 Dangote Cement Grows Revenue by 9.5% in 2016

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Dangote Cement Grows Revenue by 9.5% in 2016

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Dangote Cement Grows Revenue by 9.5% in 2016

By Modupe Gbadeyanka

Business Post has learnt that Dangote Cement Plc recorded a revenue growth of 9.5 percent in 2016, according to its audited financial results for the year ended December 31, 2016.

It was also gathered that Dangote Cement sold 8.6 million metric tons of cement outside Nigeria, 54 percent more than what was sold in 2015.

In the 2016 full year audited results presented on the floor of the Nigerian Stock Exchange (NSE) in Lagos on Monday, it was observed that the firm’s revenue grew from N389.2 billion in 2015 to N426.1 billion in 2016.

Also, its profit before tax appreciated from N220.6 billion in 2015 to N374.4 billion in the year under review, while its profit for the year stood at N368.2 billion, in contrast to N213.2 billion it recorded in 2015.

Business Post also observed that the company’s continuous increase in its production capacity resulted into putting an end to the era of Nigeria’s dependence on importation of cement. During the year under review, Dangote Cement exported about 0.4 million tons of the product to other countries.

The export is significant given that the nation used to be a net importer of cement.

As at 2011, Nigeria was one of the world’s largest importers of cement, buying 5.1 million metric tons of foreign cement at huge expense to the country’s balance of payments.

The company’s Pan-African cement plants continued to perform well, contributing significantly to its turnover and profitability.

CEO of Dangote Cement, Mr Onne van der Weijde, while presenting the results, assured investors of better returns on their investment in the firm.

He pointed out that, “The new year has started well and we expect much higher profitability in Nigeria in 2017, even though we may not see the volume growth we achieved in 2016.

“I am confident that we will deliver an even stronger performance in 2017 as we increase market share and extend our reach across Africa.”

The economic challenges notwithstanding, Mr Onne revealed that Dangote Cement’s sales from Nigerian operations increased by 13.8 percent to nearly 15.1 million metric tons at a growth rate far higher than the country’s GDP, which fell in 2016.

To the delight of the investors, Dangote Cement earnings per share increased by 4.5 percent to N11.34 and the dividend payout to the shareholders also increased significantly by 6.3 percent to N8.5 kobo per share.

It would be recalled that Dangote Cement is Africa’s leading cement producer with nearly 46 million metric tons’ capacity across Africa.

It is a fully integrated quarry-to-customer producer with production capacity of 29.25Mta in Nigeria; Obajana plant in Kogi is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.

The company has also concluded arrangements to build new factories in Ogun State (3-6Mta) and Edo State (6.0Mta).

Through its recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into a net exporter of cement serving neighbouring countries.

In addition, the company has invested several billion dollars to build manufacturing plants and import/grinding terminals across Africa. Its operations are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.0Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (3.3Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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