Dangote Cement Plc, Africa’s largest producer of the building material, posted record revenue in the first half of the year as demand revived at home in Nigeria, and across the continent with the easing of Covid-19 restrictions.
Net income at the company surged 50 percent to N191 billion from N126.9 billion a year earlier, Dangote Cement said in a statement.
Revenue rose 44.8 percent to an unprecedented N690.5 billion, the biggest jump since at least 2012.
The Group Managing Director, Dangote Cement, Michel Puchercos, said this in a statement that the company’s resilient results for the six months ending on June 30, was as a result of the group sales volumes which hit 15.3Mt.
“In the period under review, Nigerian operations of the company accounted for a sales volume of 9.87 Mt, while pan African operations contributed the balance of 5.5Mt.
“The increase in sales volume was supported by an increase in housing infrastructure and commercial construction.
“We are pleased to report a solid set of the good results for the first half of the year.
“Our performance reflects the strong demand across the group, with increases in revenue and profitability, compared to the same period last year,” he said.
Pucheros added:“This strong intrinsic performance is magnified by the lower Q2 2020 results because of COVID-19.
“The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.”
Sales volumes increased 26.1 percent to 15.3 metric tons, the company said. The cement manufacturer with a capacity to produce 48.6 million metric tons a year, plans to start a 3 million metric-ton plant in Okpella, in Edo State next quarter to boost output, Puchercos said.
According to him, the company will continue to maintain a strong focus on health and safety measures in all our engagements with stakeholders.
“We have learned a lot over the past year on how to mitigate risks associated with COVID-19.
“We remain committed to protecting our team members and communities by being fully compliant with local laws and regulations.
“We are improving the output of our existing and new assets and I am happy to announce that our three Mt Okpella Plant, Edo, is on track to come on stream in the next quarter,” he said.
Puchercos also said that the company’s Alternative Fuel project which focused on leveraging waste management solutions, reducing CO2 emissions and sourcing material locally was at an advanced stage, while procurement and installation of the necessary equipment across all plants was ongoing.
He added that Dangote Cement was focused on sound governance.
Sub-Saharan Africa is poised to expand 4.1 percent next year, according to the International Monetary Fund (IMF), as economies recover from the pandemic.
That may boost demand for construction material as countries invest on building roads, ports and power plants to revive their economies. Nigeria is planning to spend $5.6 billion to spur Africa’s largest economy.