Dangote Cement sees 2% advance in 1Q EBITDA

Dangote Cement Plc reported a 3.8 per cent YoY increase in group revenue to NGN249.2bn (US$638.2m) for the first quarter of 2020 in its unaudited results for the three months ended 31 March 2020. Group EBITDA edged up 2.2 per cent to NGN114.2bn with an EBITDA margin of 45.8 per cent during this period. Pan-African EBITDA surged 23.4 per cent YoY to NGN14.6bn in the 1Q20, reflecting a 20.9 per cent margin. Profit before tax advanced 11.5 per cent YoY to NGN88.1bn. The company’s net debt stood at NGN191.4bn.

Group cement sales volumes slipped at 0.6 per cent to 6.298Mt although Nigerian volumes edged up 0.7 per cent to 4Mt. When domestic sales only were taken into account, the advance was five per cent. The company’s Nigerian operations performed well, reporting a record quarterly revenue at NGN179.3bn, reporting a 5.6 per cent YoY rise. However, the total lockdown in South Africa due to the COVID-19 pandemic affected pan-Africa sales at the end of March with volumes down 2.9 per cent YoY to 2.28Mt.

Michel, Puchercos, Dangote’s group CEO, said: “From the beginning of the COVID-19 pandemic, we have proactively deployed all recommended measures to protect the health and well-being of our employees, customers, suppliers and communities. As such, we have implemented several rigorous protocols in all our operations across the continent. We are closely monitoring all markets according to the guidance provided by the authorities in each country. We continue to provide superior services and deliver high quality products to our customers.

“2020 started strongly, with growth across the board despite the early effects of the COVID- 19 pandemic. We achieved a record high quarterly EBITDA margin in Pan-Africa and a record high quarter in Nigeria, with revenues of NGN179bn and domestic volumes at 4.0Mt.

"In April, Dangote Cement successfully raised NGN100bn series 1 Bond from the Nigerian Debt Capital Market despite the current challenging environment. This illustrates investors’ continuous confidence in Dangote Cement’s strategy. This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria. It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market," he added.