Dangote Cement hits record N690.5bn sales over demand rush in Africa

*Report indicates the company’s net income rose 50 percent in the first half of 2021, following easing of COVID-19 restrictions driving demand

*The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operations ─Michel Puchercos, Group Managing Director/Chief Executive Officer of Dangote Cement

Emmanuel Akosile | ConsumerConnect

Following the easing of COVID-19 restrictions in several economies, Dangote Cement Plc, Africa’s largest producer of the building material, has posted record revenue in the first half of the year as demand revived in Nigeria, and across the African continent.

Dangote Cement in a an e-mailed statement Friday, July 30, 2021, said that net income at the company, controlled by multibillionaire Alhaji Aliko Dangote, surged 50 percent to 191 billion Naira ($470 million) from 126.9 billion Naira a year earlier.

Revenue rose 44.8 percent to an unprecedented N690.5 billion, the biggest jump since at least 2012, data compiled by Bloomberg indicated.

Sub-Saharan Africa is poised to expand 4.1 percent next year, according to the International Monetary Fund (IMF), 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.

Michel Puchercos, Group Managing Director/Chief Executive Officer (CEO) of Dangote Cement Plc, in the statement said: “The growth trend continues. We are focused on meeting the strong market demand across all our countries of operations.”

Sales volumes increased 26.1% to 15.3 metric tonnes, the company said.

The cement manufacturer with a capacity to produce 48.6 million metric tonnes a year, plans to start a 3 million metric-tonne 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 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.