Dangote Cement grows revenue by 12% to N761 bln in 9-month
By Samuel Bankole
Dangote Cement, Africa’s biggest building material firm posted N761.44 billion in revenue in the first nine months of the year, 12 percent higher than the preceding year earnings.
The cement company majorly owned by Africa’s richest man, Aliko Dangote recorded N679.79 billion in total earnings in the same period of last year, the company said in a regulatory filing with the Nigerian Stock Exchange (NSE) on Friday.
The firm said it sold more cement in the third quarter of the year than it sold in the same period last year.
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The period fell within the period the government of Nigeria and other jurisdictions where the company operates in Africa lifted the lockdown imposed to contain the spread of the Coronavirus pandemic.
“In March 2020, the Nigerian government-imposed restrictions on economic activities and movement of people in some of the States in the country in order to control the spread of the COVID 19 virus.
“The temporary restrictions were eased and is expected that the Government of Nigeria will continue to assess the risk associated with the COVID 19 pandemic and adapt responses accordingly.
“Our plants continued to operate during this period and the volumes sold for the nine months to 30/09/2020 exceeds the volumes sold during the comparable period in 2019.
“Sales volumes during the third quarter of 2020 were much higher than the volumes sold during the comparable period for 2019 but we witnessed a reduction in sales volumes for the second quarter of 2020 compared to the same period for 2019,” the company wrote in its statement to shareholder through the NSE.
Dangote Cement posted 37.6 percent increase in profit before tax to N271.96 billion in the nine months to September and 37 percent rise in profit after tax to N20.8.68 billion.
The company said its operations were shut down during the lockdown in some African countries during the lockdown especially in South Africa, Congo and Ghana for a period of time.
“The restrictions resulted in reduced volumes for the countries that had temporary full lockdown during the second quarter but like Nigeria, we witnessed a rebound during the third quarter with the nine months volumes for 2020 exceeding the volumes for the comparable period in 2019.
“We have considered the impact of the restrictions across the jurisdictions we operate in and concluded that the business will remain a Going Concern in the foreseeable future,” the company said.