Africa’s leading cement
producer, Dangote Cement Plc has reported a revenue of N292 billion in the
second quarter ended June 30th 2016 indicating an increase of
20 percent over N242 billion posted in the corresponding period in 2015.
According to the reports filed with the
Nigerian Stock Exchange (NSE), the company’s Profit for period stands at N106.3
billion representing a slight decline by 3 percent from 123.1 billion naira
declared a year earlier.
Chief Executive Officer of the cement
company Onne Van der Weijde in a statement said “We have achieved a commendable
result, given the very challenging situation in our main market and general
economic weakening across Africa.”
He said the management would continue to
respond to the prevailing operating environment with strategically thought
measures for the organization to maintain its leadership and profitability.
On expansion, he added, “While the
company remains committed to its ambitious plans, we are taking a more measured
approach to the roll-out of new capacity across Africa”.
Dangote Cement has more than doubled
production capacity since 2013 and said in April it may increase cement
capacity by a further 77 percent by the end of 2019. Foreign-exchange
constraints in Nigeria have prompted the company to reconsider the pace of its
expansion and now believes a five-year building program is more appropriate, it
said.
Earnings in the period were affected by
lower selling prices, higher fuel costs and the fact that several new plants
are still in less-efficient start up phases, the company said.
Cement sales volumes in the period
increased 60 percent, bolstered by record volumes in its home market, where the
company announced a price cut last September, as well as new plants elsewhere
on the continent. The devaluation of the naira will affect costs in the country
and Dangote will seek to protect its profit margins, Van der Weijde said.
Tags
Business