Dangote Cement - May 2019

The first quarter of 2019 saw Dangote Cement report a 2.3 per cent YoY increase in volumes to 6.3Mt. Over the same period, however, group revenue declined by 0.8 per cent to NGN240.2bn (US$668m) while EBITDA contracted by 11.2 per cent to NGN111.8bn.

Nigeria: despite a subdued economy, the cement market grew by six per cent in 1Q19 with Dangote supplying almost 4Mt. Revenues, however, fell by 2.3 per cent to NGN169.9bn, EBITDA contracted by 10.4 per cent and margins fell to 60.9 per cent on the back of higher input and distribution costs.

Cameroon: Dangote sold 299,000t in 1Q19, down 10 per cent YoY, due to security issues in the northwest and southwest, which disrupted activities.

Republic of Congo: Dangote supplied 58,000t in 1Q19, up 49 per cent YoY. The increase was driven by the launch of the new 32.5R product, sales price promotions and the opening of new sales depots.

Ethiopia: sales by Dangote advanced by 19.2 per cent YoY to 527,441t in 1Q19, due to closures in 1Q18 following social unrest.

Ghana: Dangote sold 117,000t in 1Q19, a decline of 39 per cent YoY. This was due to an inadequate supply of cement, which has now been remedied.

Senegal: presidential elections led to flat sales of 386,000t in 1Q19.

Sierra Leone: higher infrastructure spending resulted in a 78 per cent YoY uptick in cement sales by the company to 58,000t in 1Q19.

South Africa: sales fell 19 per cent YoY as the market remained subdued.

Tanzania: sales in 1Q19 came in 127 per cent up YoY at 281,000t. This was due to the plant being partially mothballed in the same period last year.

Zambia: sales climbed 15 per cent YoY to over 223,000t, driven by lower prices in February, a less severe rainy season and aggressive brand marketing by Dangote.