- Dangote Cement Reports N144.86bn Gross Profit in Q1 2020
Despite global uncertainties and economic headwinds, Dangote Cement, one of the largest cement manufacturers in Africa, grew gross profit by 3 percent from N140.68 billion reported in the first quarter (Q1) of 2019 to N144.86 billion in Q1 2020.
In the unaudited financial results released by the cement company, profit before tax rose by 11 percent from N78.96 billion to N88.06 billion. Also, the company’s net profit stood at about N60.60 billion.
While revenue expanded by 3.8 percent from N240.16 billion to N249.18 billion, the company sold 4.0 metric tonnes (MT) of cement in Nigeria and reported 2.8MT for other African nations where it operates. Other African nations contributed 36.2 percent of the total sales filed in the quarter — with six of the nine operating nations reporting profits.
Speaking on the performance, Michel Puchercos, the Chief Executive Officer of Dangote Cement, said Dangote Cement delivered a solid performance despite economic lockdown and the global health pandemic.
“From the beginning of the COVID-19 pandemic, we have proactively deployed all recommended measures to protect the health and well-being of our employees, customers, suppliers and communities. As such, we have implemented several rigorous protocols in all our operations across the continent,” Puchercos said.
“We are closely monitoring all markets according to the guidance provided by the authorities in each country. We continue to provide superior services and deliver high quality products to our customers. 2020 started strongly, with growth across the board despite the early effects of the COVID-19 pandemic. We achieved a record high quarterly EBITDA margin in pan-Africa and a record high quarter in Nigeria, with revenues of N179bn and domestic volumes at 4.0Mt,” he said.
The executive officer added that the company raised N100 billion series a bond from the Nigerian debt market in April despite the ongoing economic headwinds. This he said explains the level of confidence investors have in the cement company and its business strategy.
“This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria. It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market,” he said.