Dangote Cement Group's revenue up 16% in 1Q18

Dangote Cement group released its 1Q18 results and reported revenue up 16.3 per cent to NGN242.1bn (US$672m). This gives Dangote a market share of approximately 66 per cent. Group EBITDA rose by 22.2 per cent to NGN 125.9bn, while Pan-African EBITDA increased by 77.3 per cent to NGN13.1bn.

In the domestic market of Nigeria, Dangote sold 3.7Mt of cement in the 1Q18, up 5.3 per cent on 1Q17 after slightly lower sales in January and February. Of Nigeria’s total 1Q18 sales, nearly 211,000t was exported to countries such as Ghana, Niger and Togo.

The volume sold by Nigerian operations represents 63.9 per cent of the group total before inter-company adjustments. 

Pan-African operations sold more than 2.2Mt of cement in 1Q18, a fall of 4.4 per cent on 1Q17. Lower sales in Tanzania were due to maintenance and because of disruptions due to civil unrest in Ethiopia. Stronger performances were recorded in other pan-African territories, which also benefitted from maiden 1Q18 sales from operations in the Republic of Congo and a full quarter of sales in Sierra Leone. The total pan-African volume represents 36.1 per cent of group sales volumes before inter-company adjustments.

In Cameroon Dangote Cement estimates the total market was 760,000t in the first three months of 2018 and the company’s Douala plant sold approximately 332,000t of cement in 1Q18, up 9.6 per cent on 1Q17.

In the Republic of Congo, the Mfila plant sold 39,000t of cement in 1Q18 while in Ethiopia the Mugher factory saw sales fall by 16.7 per cent to 443,000t after unrest in the region.  In Ghana Dangote sold 193,000t in 1Q18, down 32.8 per cent on 1Q17.

Meanwhile, the Pout plant in Senegal sold 388,000t of cement in 1Q18 up 7.7 per cent on 1Q17. The factory sold 145,000t of cement to customers in Mali.

The Freetown bagging terminal in Sierra Leone sold 33,000t of cement in 1Q18, representing 44.5 per cent growth on 1Q17.

South African sales for Dangote were up 7.3 per cent in 1Q18. The Mtwara factory in Tanzania sold 123,000t of cement in the period, down 46 per cent on 1Q17. In addition, in Zambia Dangote sold 194,000t of cement for the period, up 30 per cent on 1Q17.