Dangote Cement Targets Expansion, Higher Sales Volume in 2018
By Dipo Olowookere
The management of Dangote Cement has expressed its willingness to expand its operations in 2018 in order to grow its revenue and profits.
To make this possible, the firm is planning to raise N300 billion through the issuance of bonds in tranches over next three years.
Already, the cement maker has received approvals of the necessary regulatory agencies to go ahead with the exercise.
Proceeds from the bond issuance would be used to fund the expansion plans and also to refinance its debt.
Speaking last Tuesday during an investor conference call, the Chief Financial Officer (CFO) of Dangote Cement, Mr Brian Egan, disclosed that the bond would be issued in tranches of N50 billion at a time whenever interest rates are favourable.
Also, acting Chief Executive Officer (CEO) of Dangote Cement, Mr Joe Makoju, said on the call that the company plans to boost its sales volume this year as the Nigerian economy recovers from recession it slipped into in 2016.
Dangote Cement is controlled by Africa’s richest man, Mr Aliko Dangote.
The firm also said last Tuesday that it was considering to sell Eurobonds to boost its funding.
In its 2017 financial statements, Dangote Cement it generated N806 billion as revenue, 31 percent growth from what was recorded in 2016.
Its net income rose 43 percent to N204 billion, but sales volumes declined by seven percent, owing to a downturn in Nigeria, its biggest market.
Africa’s largest oil producer shows signs of recovering from a recession in 2016 after three straight quarters of expansion in gross domestic product, which the International Monetary Fund (IMF) estimates will grow 2.1 percent this year.