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Dangote Cement records robust pan-African volumes Q3 2023

*Arvind Pathak, CEO of Dangote Cement Plc, states the ‘positive nine-month result’ is a combination of the company’s strong value proposition, improved operational efficiency, and a sustained drive to contain cost amid an accelerating inflationary environment in the economy

Isola Moses | ConsumerConnect

Dangote Cement Plc in the nine months ended September 30, 2023, reported 15.2 percent increase in pan-African volumes, which rose from 7.4Mt to 8.5Mt, compared to the corresponding period in 2022.

The conglomerate stated the Pan-African volumes referred to the volume of sales by Dangote Cement plants situated outside Nigeria.

Dangote Cement noted that a review of the company’s unaudited results released on the portals of the Nigerian Exchange (NGX) indicated the volumes were driven by sales from Dangote Cement Plant, Senegal which posted 66.9 percent increase in sales and Dangote Cement Plant Congo which reported an increase of 60.5 percent in volumes.

It also said: “Dangote Cement Zambia recorded 18 percent increase, Ghana 15.5 percent, South Africa 18.5 percent, Ethiopia, and Tanzania 6.5 percent respectively.”

The company further noted its Profit Before Tax rose by 20.5 percent, from N335.9 billion to N404.89 billion while profit after tax rose from N213.10 billion to N277.55 billion indicating an increase of 30.2 percent.

Speaking on the results, Arvind Pathak, Chief Executive Officer (CEO) of Dangote Cement Plc, said “this positive nine-month result is a combination of our strong value proposition, improved operational efficiency and a sustained drive to contain cost amidst an accelerating inflationary environment.

“We achieved double-digit growth in Group revenue at ₦1,514.6B, while EBITDA rose to an all-time high of ₦662.8B, up 28.5 percent.”

Pathak also explained: “Again, we continue to show the strength in the diversity of our operations. “Our pan-African operations generated a record revenue and EBITDA growth of 103.9 percent and 255.4 percent, respectively, contributing 41.9 percent to Group volumes.”

The Chief Executive noted the “unprecedented growth was driven by sustained demand across our countries of operation.

“We will continue to explore emerging opportunities and export strategies around the region to further consolidate the Group performance.”

Pathak hinted the company is at “the final stage in the completion of our 1.5Mta grinding plant in Cote d’Ivoire, having commissioned our 0.45Mta Takoradi plant in the first half of the year.

“We are focused on improving our value proposition, anchored on our promise to deliver strong and superior cement to our unwavering customers.

“I am very pleased with the direction of our business and confident we will finish the year strong.”

Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa.

A fully integrated quarry-to-customer producer, the company has  a production capacity of 35.25Mta in its home market, Nigeria.

Obajana plant in Kogi State, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines.

The Ibese plant, in Ogun State, has four cement lines with a combined installed capacity of 12Mta;  Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta, said the company.

Dangote Group said through recent investments, the cement company has eliminated Nigeria’s dependence on imported cement, and has transformed the country into an exporter of cement serving neighbouring countries.

In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

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