Dangote Cement: First quarter of 2015 reveals a 10.5% increase in gross profit

Dangote Cement has released its unaudited results for the first quarter of 2015, showing an increase in gross profit of 10.5 percent y/y at N74.7 billion (US$375 million).

Revenue rose 10.8 percent to N114.7 billion (US$576 million ), up from N103.57 billion (US$522 million) in the first quarter of 2014. Net profit was up 44.1 percent to N68.6 billion (US$344 million), while cement sales volumes increased by 3.4 percent to 3.8 million tonnes, which is said to be down to the plants in South Africa, Senegal and Cameroon, as well as new lines in Nigeria.

In the company’s home country, Nigeria, improved gas supply and greater use of coal, together with stronger prices, contributed to increased margins. The company’s new cement plants in Zambia and Ethiopia have also entered into operation and are expected to have a positive impact on the group’s financials in subsequent quarters.

Dangote Cement has been expanding rapidly across Africa and has 29 million tonnes of cement capacity in Nigeria alone.