Nigerian tycoon Aliko
Dangote’s Dangote Cement continues to face difficulty in its expansion journey
in Africa. According to official financial statement of H1 2019, the
company posted a turnover of 140 billion Naira ($386 million) from operations
across the continent, just 1% higher than the 138.6 billion Naira the same
period in 2018.
EBIDTA (earnings
before interest, depreciation, taxes and amortization) over the period was 23.9
billion Naira, down the 25.9 billion Naira in H1 2018.
Last year, Dangote
Cement Plc faced a loss of 87 billion Naira for operations on the continent; in
addition to a still weak turnover and expenses that remained constant, the
group dealt with a financial loss of 98 billion Naira.
In a context where
the African continental free trade area is gradually being established, Dangote
Cement is considered a hero of economic pan-Africanism. But the company remains
lagging in reaching its expected profitability.
On the Lagos stock market, where the group is listed, the value of its shares has fallen by nearly 13% since the year started. And this situation might continue in the short term. The first half-year was a little difficult. Net profit for the period reached a weak 119.2 billion Naira; though higher than the 113.4 billion Naira in H1 2018, due to a lower tax burden.https://www.ecofinagency.com/finance/0908-40384-dangote-cement-struggles-with-its-africa-expansion
