Dangote Cement records strong pan-African cement volumes in FY20

Dangote Cement's regional performance in FY20 saw its domestic market of Nigeria return volumes of 15.73Mt, a rise of 11.5 per cent on the 14.11Mt recorded in FY19. Cement and clinker sales in Nigeria rose by 14.3 per cent in FY20.

The company saw a strong ‘V-shaped’ recovery in cement demand in Nigeria in the 3Q20 with volumes recorded at 4.29Mt for the quarter and this was relatively sustained with strong 4Q20 volumes of 3.91Mt. Dangote reported decreased market disruptions as a result of reduced rains.

Pan-African results
Cement volumes rose by 4.4 per cent to 10Mt despite lockdown restrictions. Revenues also increased by 12.7 per cent o NGN318.7bn (US$0.83bn). 

Cameroon accounted for 1.3Mt of total cement sales on the back of an increase in construction projects owing to the African Nations Championship.

In the Republic of Congo, Dangote recorded 0.38Mt of cement sales in FY20 and achieved a 42 per cent market share, up from 28 per cent in FY19.

In Ethiopia Dangote Cement saw cement sales of 2.1Mt and recorded a 28 per cent share of the market and up 8.7 per cent on FY19.

Ghana’s cement sales reached 0.42Mt for Dangote, a decline of 15.8 per cent and a six per cent market share.

Senegal’s cement sales were slightly stronger at 1.59Mt in FY20 to return a 23 per cent market share

Meanwhile, Sierra Leone recorded increased infrastructure spending, which helped Dangote Cement to  estimated cement sales of 0.27Mt and a 31 per cent market share.

South African results declined in 1H20 due to the lockdown but recovered in 2H20 with sales for FY20 rising by 9.1 per cent YoY.

Tanzanian cement sales for Dangote totalled 1.1Mt for an 18 per cent market share. Sales at the Mtwara factory were nine per cent lower than in FY19, including 81,000t of clinker.

Zambian cement sales totalled 0.77Mt for a 29 per cent market share.

Outlook
By 2021 Dangote Cement expects all its countries of operation to return to growth. South Africa had the most significant decline in cement demand in FY20 in Dangote’s operations, but the government plans to expedite the implementation of at least 50 infrastructure projects with a total investment value of more than ZAR340bn  (US$22.8bn).