Business
Update: Dangote Cement gross revenue soars by 29 percent – on track to dominate African market
Dangote Cement’s gross revenues grew by 29 percent to US$1.82 billion for the third quarter 2013, up from US$1.41 billion recorded in the corresponding period in 2012.
Dangote Cement recorded a profit before tax of US$952 million for the 9 month period to September 2013, an increase of 43 percent Year-on-Year, from US$670 million as at the third quarter in 2012.
Operational expenses grew by 57 percent to US$ 211 million in the 9 month through September 2013, while finance cost reduced by 5 percent to US$ 57 million in the current period 2013.
The results for the third quarter 2013 showed that after-tax income increased to US$ 989 million representing an increase of 29 percent compared to US$674 million recorded the year before.
Earnings per share increased by 43 percent in the current period to US$0.058 from US$0.040 in the third quarter in 2012.
Return on equity and Assets for the 9 month through September 2013 increased to 29 percent and 20 percent respectively, while profit margin jumped to 56 percent – the highest profitability and efficiency performance seen by any firm in Nigeria.
Total inventories in the quarter were up 1 percent to US$191 million in the current period, this underlines the ability of the company to sustain minimum inventory to generate high sales.
The company’s trade and other receivables in the 9 month period through September 2013 rose by 75 percent Year-on-Year to US$54 million, from US$31 million as at the third quarter in 2012.
Shares in the Dangote Cement Company closed at US$1.16 as at November 15 2013 representing a capital gain of 57.4 percent Year-to-date.
Investors are willing to pay more for the company’s sales as the price to sales ratio stood at 10.5 which is the highest ratio in the cement industry.
Dangote Cement had a market capitalization of US$18.9 billion as at November 15 2013 making it the biggest quoted company on the Nigerian Stock Exchange (NSE) and by extension West Africa.
The company can further increase its share of the market as its Cement sales are increasing faster than nominal gross domestic product (GDP) growth rates.
Nigeria’s real GDP grew at 6.81 percent in the third quarter of 2013 while nominal GDP (real GDP +inflation) rose by 14.98 percent in the second quarter, however Dangote Cement product sales grew by 29 percent.
About Dangote Cement: Dangote Cement is a publicly traded cement manufacturer based in Nigeria. A subsidiary of the Dangote Group, founded and led by Aliko Dangote, it is the largest company traded on the Nigerian Stock Exchange.
In Nigeria the Company operates the Obajana Cement Plant (OCP), the largest cement plant in Africa, Ibese Cement plant and Benue cement plant. The company’s aggressive current growth plan includes an integrated or grinding plants and imports/packaging facilities in 13 African Countries.
Dangote Cement is the market leader in the Nigerian cement industry with 74 percent market share as at the third quarter of 2013. Dangote Cement Plc became the first Nigerian company to join the Forbes Global 2000 Companies in April 2011.