Africa’s largest cement producer, Dangote Cement has announced its third quarter financial year result, reporting revenue growth of 12 per cent.
The Cement Group’s revenue increased to N761.4 billion compared to N679.8 billion in 2019 with domestic operations accounting for N535.51 billion which compared to N467.88 billion up by 14.5 percent.
According to the result, Pan-Africa operations contributed N232.61 billion, indicating a 9.1 percent increase over N213.20 billion recorded in 2019.
The group also reported a 6.6 percent increase in Group sales volume which rose from 18.02 million tonnes in 2019 to 19.21 million tonnes in the nine months ended 30th September 2020.
Analysis of the company’s unaudited results for the period indicated that Nigerian operations accounted for 11.92 million tonnes, an increase of 10.2 percent compared to 10.82 million tonnes in the corresponding period in 2019.
Pan-Africa operations accounted for the balance of 7.47 million tonnes, an increase of 3.7 percent over the same period in 2019.
On quarter basis comparison, Nigerian sales volumes went up by 39.9 percent in the third quarter driven by strong demand and pull effect of its Bag of Goodies Season two National Consumer Promotion.
Group Chief Executive Officer, Dangote Cement, Michel Puchercos, said, “I am delighted to report that Dangote Cement experienced its strongest quarter in terms of EBITDA and strongest third quarter in term of volumes.
Despite a challenging environment, Group volumes for the nine months were up 6.6 per cent and group EBITDA was up 17.1 per cent at a 46.6 per cent margin.
This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging second quarter.
In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads.
Sales volumes in Nigeria were up 40 per cent in the quarter and Pan-Africa reached a record high EBITDA margin of 24 per cent in the quarter. “
