01 November 2019

Cement Group’s unaudited results for the 9M19 to 30 September 2019 saw group
volumes up 1.1% to 18Mt and Nigerian sales up 0.6% to 10.8Mt, driven by strong
3Q19 promotional activity. Pan-African cement volumes rose by 1.7% to 7.1Mt for
the 9M19.

However, group revenue fell by 0.8% to NGN679bn (US$1.88bn) and group EBITDA
slipped by 10.1% to NGN303.2bn.

Makoju, Group CEO said: “The huge success of our Bag of Goodies promotion
drove third-quarter volume growth up by 9.4% in Nigeria and this helped group
sales volumes increase by 1.1% in the first nine months of 2019.

“Nigeria’s performance, augmented by strong growth in Tanzania and
consistently good sales in Senegal, helped to offset some economic and
operating challenges we have experienced in key territories such as Ethiopia
and South Africa.”

Dangote group’s total cement volumes for 9M19 reached 17.96Mt up 1.1% on 9M18
sales of 17.77Mt. Group revenues for 9M19 reached NGN679.8bn, down 0.8% on
NGN685.3bn in 9M18. Group net profit for 9M19 totalled NGN154.4bn, down 2.5%
from NGN158.3bn in 9M18.

African performance

Excluding Nigeria, revenues fell by 0.5% to NGN213bn and EBTDA slipped by 3.5%
to NGN37.8bn. Highlights included the company’s Tanzania’s cement volumes,
which rose by 106% in the 9M19 period, and Senegal’s performance, where sales
exceeded 100% of plant capacity.

In Cameroon Dangote Cement sold 0.87Mt of cement in 9M19, down from 0.92Mt in
9M18. Sales were in part challenged by the entry of 1.6Mta new competitor

In Rep Congo, Dangote Cement sold 0.17Mt of cement in 9M19, up nearly 12% on
9M18 helped by the new 32.5R product and sales price promotions. Exports of
clinker to Cameroon and exports to DR Congo and Central Africa are part of
Dangote Cement’s forward strategy.

Ethiopia sales totalled 1.4Mt in 9M19 remaining stable, despite an electricity
shortage in 2Q19, leaving Dangote with a market share of 29 per in 3Q19.

In Ghana, the company sold 0.38Mt of cement in 9M19, down 36.4% owing to lower
supplies of cement. This gave Dangote Cement a 10% of the market in Ghana.

Senegal’s market saw 1.1Mt of cement sales for Dangote Cement in 9M19 up 7.9%
and giving the company a 23% market share, while exports to Mali continued with
higher prices.

Sierra Leone saw company volumes rise by 108% to 0.17Mt in 9M19 and Dangote
Cement recorded a 41% share of the domestic market.

Africa’s market remains depressed and cement sales fell 15% YoY versus a fall
of 19% after 6M19. The market also saw cement price increases of 2.5-3.5%,
inclusive of 1.5-2.5% carbon tax recovery.

In Tanzania, Dangote Cement sold 0.3Mt of cement in 3Q19. Volumes were up 106%
from 0.4Mt in 9M18 to 0.84Mt in 9M19.

Finally, Zambia saw volumes increase by 1.6% to 0.78Mt to give Dangote Cement a
42% market share having implemented a cement price rise in 2Q19.

Published under Cement News

Read the latest issue

Latest Issue