- Exports 174,000Mt to Ghana in 2017
By Franklin Ocheneyi
Dangote Cement Plc said that it exported 174,000 metric tons of cement from Nigeria to Ghana while the Group sold cement worth over N805 billion across its operations in ten African countries in 2017 Financial Year ended.
Checks by Nigeria Industrial Digest, shows that out of the over N805 billion sales revenue posted by the Group, its Nigerian operations topped the sales chart with over N552 billion while its production plants in South Africa and eight other countries delivered over N258 billion to the Group’s revenue in the year under review.
A further breakdown of the Group’s sales revenue showed that South Africa is the second largest market for Dangote Cement with sales figure of N57 billion; followed by Ethiopia N54 billion; Cameroon N47 billion, and Senegal N28.7 billion. Others are Ghana N28.06 billion and Zambia N25.1billion and Tanzania is the least with N16.6 billion
Joseph Makoju, Acting Group Chief Executive Officer of Dangote Cement said that sales revenue rose in 2017 but its sales volumes of cement fell.
“Its revenue rose by 31% year-on-year to US$2.23billion in 2017 from US$1.70billion in 2016; However, sales volumes of cement in Nigeria fell by 15.9% to 12.7Mt from 15.1Mt. “Altogether, its sales volumes rose by 8.4% to 9.37Mt in the rest of Africa and fell by 7% to 21.9Mt in total. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 50.9% to US$1.08bn from US$713 million.
“Although Nigerian volumes were lower in 2017, our Pan-African operations increased volumes by 8.4% and now make up 42% of the Group’s total cement sales, demonstrating the robust diversification of our business,” he said
He added that the cement producer had increased its footprint from eight countries to 10 during the reporting period with the opening of new facilities in the Republic of Congo and Sierra Leone, while its operations in Cameroon, Senegal and Ethiopia achieved ‘strong’ sales growth during the year.
Regionally, Dangote Cement said that its estimate for the total Nigerian cement market fell by 18% to 18.6Mt in 2017 due to a recession in the first half of the year and higher prices. It also noted that its Gboko plant in Benue State was mothballed for ‘most of the year.’
In Senegal it introduced 32.5R cement to its product range. In Sierra Leone it opened a 0.5Mt/yr terminal and bagging plant in Freetown in early 2017.
In Tanzania it said that its plant at Mtwara had lost earnings due to its reliance on temporary diesel generators. Gas turbines are scheduled to start operation in March 2018.