Dangote Cement Sales Jump to Record on African Demand Rush
Dangote Cement Sales Jump to Record on African Demand Rush
Dangote Cement Plc, Africa’s largest producer of the building material, posted record revenue in the first half of the year as demand revived at home in Nigeria, and across the continent with the easing of Covid-19 restrictions.
Net income at the company, controlled by billionaire Aliko Dangote, surged 50% to 191 billion naira ($470 million) from 126.9 billion naira a year earlier, Dangote Cement said in a statement on Friday. Revenue rose 44.8% to an unprecedented 690.5 billion naira, the biggest jump since at least 2012, according to data compiled by Bloomberg.
Sub-Saharan Africa is poised to expand 4.1% next year, according to the International Monetary Fund, as economies recover from the pandemic. That may boost demand for construction material as countries invest on building roads, ports and power plants to revive their economies. Nigeria is planning to spend $5.6 billion to spur Africa’s largest economy.
“The growth trend continues,” Chief Executive Officer Michel Puchercos said in emailed statement. “We are focused on meeting the strong market demand across all our countries of operation.”
Sales volumes increased 26.1% to 15.3 metric tons, the company said. The cement manufacturer with a capacity to produce 48.6 million metric tons a year, plans to start a 3 million metric-ton plant in Okpella, in Nigeria’s Edo State next quarter to boost output, Puchercos said.
The company’s shares rose less than 1% at close on Friday in Lagos to 248.10 naira a unit. It has gained 1.3% this year, compared to 4.3% retreat by the 151-member Nigerian Exchange Group Main-Board.
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