Demand remains strong across our 10 countries of operation
Profit after tax up 51.9% at ₦191.6B
Lagos, 30th July 2021: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the six months ended 30th June 2021
Financial Highlights
- Group revenue up 44.8%, to ₦690.5B
- Group EBITDA up 61% to N351.1B; 50.8% margin
- Pan-Africa EBITDA up 49.8% to ₦477.2B; 23.8% margin
- Profit after tax up 51.9% to ₦191.6B
- Net debt of ₦400.9B; net gearing of 49.8%
Operating Highlights
- Group sales volumes up by 26.1% to 15.3Mt, supported by strong demand across all operations
- Nigeria volumes up 33.2% to 9.9Mt
- Double digit volume growth in Pan Africa of 15.5%
- Recommended clinker exports from Nigeria in Q2
- Two clinker shipments from our Nigeria terminals; one from Apapa and one from Onne
Capital Structure
- Successful issuance of Series 1 Fixed Rate Senior Unsecured Bonds under DCPs new ₦300 billion Multi-Instrument Issuance Programme
- Buy-back programme renewal approved by the Securities and Exchange Commission
- Dividend of ₦16.00 per share was paid in May 2021, paid one month ahead compared to previous years.
Michel Puchercos, Group Chief Executive Officer, said:
“We are pleased to report a solid set of the 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. This strong intrinsic performance is magnified by the lower Q2 2020 results due to the effect of COVID-19. The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.
We also 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.
Our Nigerian business recorded volume growth of 33.2% in H1 2021 at 9.9Mt, with a record EBITDA of ₦311.2B, up 60.1%. We recommenced our clinker exports in the second quarter after taking the strategic decision to pause them. This was to ensure we met the historic volume growth in the Nigerian domestic market since mid-2020. We are improving the output of our existing and new assets and I am happy to announce that our 3Mt Okpella plant is on track to come on stream in the next quarter.
Our Alternative Fuel project which focuses on leveraging waste management solutions, reducing CO2 emissions and sourcing material locally is at an advanced stage. The procurement and installation of the necessary equipment across all plants is ongoing.
In addition, Dangote Cement became the first Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy. We believe that adopting XBRL reporting will strongly benefit Dangote Cement’s existing and potential investors. It represents another step in our continuing efforts to modernise and enhance transparency of, and access to, companies’ disclosures.
As Africa’s leading cement producer, we are leading the way with our commitment to and best practices. We are driven by the goal of achieving the highest level of governance and building a sustainable brand for all stakeholders. Transparency and consistency are at the core of every part of our business culture.”
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with 48.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, we have a production capacity of 32.25Mta in our home market, Nigeria. Our Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; our Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and our Gboko plant in Benue state has 4Mta. Through our recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
In addition, we have operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta)