Group revenue up 15.2% at ₦1,177.3B
Nigeria EBITDA up 4.5% at ₦479.9B, despite heightened inflation
Significant increase in energy and distribution cost
Lagos, 28th October 2022: Dangote Cement PLC (DANGCEM-NL), Africa’s largest cement producer, announces unaudited results for the nine months ended 30th September 2022.
- Group revenue up 15.2% to ₦1,177.3B
- Group EBITDA up 0.2% to ₦515.9B; 43.8% margin
- Nigeria EBITDA up 4.5% to ₦479.9B; 53.9% margin
- Profit after tax down 23.4% to ₦213.1B; mainly due to exchange losses from the depreciation in the CFA and Ghana Cede
- Net debt of ₦466.8B; net gearing of 55.7%
- Group sales volumes down 6.2% to 20.8Mt
- Nigeria volumes down 4.7% to 13.5Mt
- The National Consumer Promotion improved market share in the quarter
- Okpella power plant commissioned in August
- Co-processed 102Kt of waste YTD, a 77% increase over 2021
- Thermal substitution rate is estimated at 3.8% as at 9M 2021 vs. 2.3% in 2021.
Michel Puchercos, Group Chief Executive Officer, said:
“Despite the elevated inflation due to a very volatile global environment, we have made strides in 2022. We recorded increases in revenue and EBITDA that drove strong cash generation across the Group. We recorded revenue of ₦1,177.3B, up 15.2% compared to last year and Group EBITDA of ₦515.9B, up 0.2% with an EBITDA margin of 43.8%.
To mitigate the impact of significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels. So far this year, we co-processed 101,553 tonnes of waste representing a 77% increase over 9M 2021. We are on track to commission our Alternative Fuel feed system at Obajana lines I and V; and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage.
To drive consumer engagement and support demand during the rainy season; we commenced the 3rd season of our National Consumer Promotion – “Bag of Goodies 3”. So far, the National Consumer Promotion has made 190 millionaires and multimillionaires across all States in Nigeria. On the operational side, we have commissioned our power plant at Okpella and are progressing well to deploy grinding plants in Ghana and Cote d’Ivoire.
Our business model remains robust, thanks to the prudent and flexible approach we have taken across our operations. Our continuous focus on efficiency, meeting market demand and maintaining our costs leadership drives our ability to consistently deliver value to all shareholders.
About Dangote Cement
Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, we have a production capacity of 35.25Mta 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; our Gboko plant in Benue state has 4Mta; and our Okpella plant in Edo state has 3Mta. 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).