Dangote Cement posts N140.5bn revenue in 2016 Q1
Dangote Cement has posted revenue to the tune of N140.5 billion for the first quarter ended March 31, 2016, compared to the 2015 figure of N107.2 billion. According the company’s filing with the Nigeria Stock Exchange (NSE) revenue increased by 22.5 per cent compared with the figure achieved in the same period of 2015.
Total sales of the company within the period increased to 6.4 million tonnes (MT) against 3.8 MT posted in 2015, indicating an increase of 68.4 per cent. It is operating profit margin, however decreased by four per cent from N58.44 billion posted in the first quarter of 2015, to N56.1 billion in the period under review. Commenting on the result, the company’s chief executive officer, Mr. Onne van der Weijde, said that sales volume increased in all territories the company was operating.
He said sales in Nigeria increased by 45.4 per cent to 4.5 MT after a price reduction.
“As we forecast at the time of last September’s price cut, group operating profit margins were reduced by the impact of the lower price in our main market. “That we are gaining substantial market shares so soon after launching operations across Africa is a testament to our business model of competing with higher quality products produced at lower costs”, Weijde said.
He explained that the company’s success in these markets would position it for even better performance in the coming years as economies begin to recover.
He said that the company had begun work on new plants to meet future needs in Nigeria and Côte d’Ivoire.
The chief executive officer added that the company had signed a Memorandum of Understanding for the financing and construction of its next wave of plants in Nigeria and beyond to reinforce its position as a global cement company.