Nigeria: Dangote Cement’s sales revenue and earnings rose in the first quarter of 2017 due to higher prices despite a significant fall in cement sales volumes in its home country. Its sales revenue increased by 48.1% year-on-year to US$682m from US$460m in the same period of 2016 and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42.3% to US$337m from US$237m. However, its cement sales volumes fell by 6.4% to 6.03Mt from 6.44Mt caused by a drop of 16.5% in Nigeria.
“Dangote Cement produced record financial results in the first three months of 2017. Despite lower group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4% more EBITDA/t than the same quarter last year,” said chief executive officer Onne van der Wijde. He added the group has started sourcing coal from Nigerian mines run by its parent company, Dangote Industries, and that this had improved margins, reduced its need for foreign coal and the foreign currency required to buy it.
The group has continued to grow its operations outside of Africa to the extent that they represent 28% of its revenue. It reported a ‘good’ start for a new import and bagging facility in Sierra Leone that began operations in January 2017 and stated that it expects to start a 1.5Mt/yr plant in Congo in May 2017.