Dangote Cement’s full year profits fall to US$547m as growth in key markets plunge

NIGERIA – Dangote Cement Plc, Africa’s leading cement producer, has posted a profit after tax of N200.521bn (US$546.87 million) for the financial year ended December 31, 2019.

The cement company’s profits for 2019 represent a 48.63% reduction when compared against the US$ 1.07 billion (N390.325bn) profits recorded in 2018.

The company’s revenues also fell to N891.674bn (about US$2.44 billion) from the N901.213bn (about US$2.46 billion) recorded in 2018.

The board proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming Annual General Meeting.

 “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets,” the Group Chief Executive Officer, Dangote Cement, Joe Makoju, said while commenting on the results.

Makoju further noted that the Nigerian operations maintained volume and revenue performance in a challenging environment.

According to the outgoing CEO, export sales were also affected by the border closure in the second half of 2019.

“Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria,” Makoju added.

The company said that Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal with Tanzania contributing positively at EBITDA level.

“In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements,” Makoju said.

Makoju further noted that he was proud to have watched it grow from a local producer back in 2007 to a major force in global cement production.

“Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement, serving neighbouring countries,” he added.

“I wish Mr Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”

Dangote Cement produces nearly 46Mta capacity across Africa and it is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria.

The Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines.

The Ibese plant in Ogun State, on the other hand, has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.