Dangote Cement Nets N191.6bn 2021H1 Profit, Sales Volume Hits 15.3MT

Africa’s largest cement producer, Dangote Cement Plc reported a profit after tax of ₦191.6bn in the first half of the 2021 financial year, after a tax charge of N89.6bn, and the commencement of clinker exports from Nigeria in the second quarter. So far, it said there have been two clinker shipments, one each from its Apapa and Onne terminals.

Within the period, Group sales volumes hit 15.3 Metric Tonnes of cement, with the Nigerian operations accounting for sales volume of 9.87MT, while the pan African operations contributed the balance of   5.5Mt.

The increase in sales volume, the company noted in a statement, was supported by an increase in housing infrastructure and commercial construction.  

Commenting on the result, the Group Managing Director, Michel Puchercos, speaking expressed satisfaction with what he described a solid set of good results, which he said “reflects the strong demand across the group, with increases in revenue and profitability, compared to the same period last year.  This strong intrinsic performance is magnified by the lower Q2 2020 results because of COVID-19. The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.”

On the steps taken by the company to protect the stakeholders, he said, the management continues “to maintain a strong focus on health and safety measures in all our engagements with stakeholders. We have learned a lot over the past year on how to mitigate risks associated with COVID-19. We remain committed to protecting our team members and communities by being fully compliant with local laws and regulations.

“We recommenced clinker exports in the second quarter after taking the strategic decision to pause our clinker exports. This was to ensure we met the historic volume growth in the Nigerian domestic market since mid-2020. We are improving the output of our existing and new assets and I am happy to announce that our 3Mt Okpella Plant, Edo State, is on track to come on stream in the next quarter.”

Puchercos stated that the company’s Alternative Fuel project which focuses on leveraging waste management solutions, reducing CO2 emissions, and sourcing material locally is at an advanced stage while procurement and installation of the necessary equipment across all plants is ongoing.

He added that Dangote Cement is focused on sound governance, saying, “we are leading the way with our commitment to sustainability and best practices.  We are driven by the goal of achieving the highest level of governance and building a sustainable brand for all stakeholders.  Transparency and consistency are at the core of every part of our business culture.”

 Dangote Cement became the first Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy. Adopting XBRL reporting format will strongly benefit Dangote Cement’s existing and potential investors. It represents another step in continuing efforts to modernize and enhance the transparency of, and access to, companies’ disclosures.

Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6Mta capacity across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.

The group has a production capacity of 32.3Mta in its home market, Nigeria. It has three cement plants in Nigeria, the Obajana plant in Kogi state, with 16.3Mta of capacity across four lines; the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and the Gboko plant in Benue state has 4Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighboring countries.  

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