Fidelity bank card banner Camano banner
Dangote Cement extends market dominance

By News Express on 29/04/2013

Views: 2,965


Dangote Cement’s massive investment in new capacity has paid off as it recorded upsurge in sales of its locally produced cement to the tune of 10.4 million tonnes in 2012, according to the company’s 2012 financials, presented on the floor of the Nigerian Stock Exchange (NSE) in Lagos last weekend.

The Group increased its market share steadily during the year, averaging an estimated 57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011. During the last three months of 2012 the Group’s market share exceeded 60 per cent.

The report revealed that Dangote Cement consistently outperformed the growth of the Nigerian cement market during 2012, as well as outperforming the Building and Real Estate sectors of the Nigerian economy for much of the year.

“The success recorded in the sales of the locally produced cement led to an impressive performance, as it recorded a 14.7 per cent increase in the gross profit for the year,” the Group said in astatement in Lagos made available to News Express.

The shareholders are also in for a good time as the directors recommended that they be paid 300k per share for the reviewed period, the statement said.

The Chief Executive of Dangote Cement, Devakumar Edwin, in justifying the Company’s good outing said a combination of some managerial strategies adopted in the face of import dumping which led to the glut in the year under review accounted for the impressive performance.

Said he: “Dangote Cement achieved a strong increase in revenues and profitability in 2012 despite severe flooding that affected demand and a shortage of gas that affected margins.

“The Group achieved several key objectives in 2012. In the first half of the year we launched 11 million tonnes of new capacity that brought Nigeria to self-sufficiency in cement production. Because of our investments there is no more need for Nigerians to buy foreign cement.

“By the end of 2012 we were preparing to make Nigeria an exporter of cement to neighbouring countries and in the first quarter of 2013 we realised that goal, to the benefit of the Nigerian economy. Soon, we hope to be manufacturing cement in Senegal as we expand into other African countries to supply a basic but profitable commodity that is vital to Africa’s growth.

“Current trading is strong. We estimate that demand for cement in Nigeria increased by almost 16% in the first quarter of 2013 and I am pleased to report that our volumes rose by substantially more than the market's growth rate in the same period. Such a strong start gives us confidence that 2013 will be a good year for Dangote Cement.”

The company announced a profit after tax of N151.93 billion up from N121.4 billion of 2011 representing an increase of 25 per cent.

DCP is planning to list on the London Stock Exchange next year. Already the largest cement producer in sub-Saharan Africa, Dangote Cement is more than doubling capacity this year to 21m metric tonnes, and wants to reach 43m tonnes in 2015.

Besides Nigeria, where it has three plants and 70 per cent market share, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.

The expansion comes at a time of fast growth in Africa, with the IMF forecasting that regional economies will expand by 5.75 per cent this year. This is boosting spending on infrastructure and housing and driving demand for cement.

Source News Express

Posted 29/04/2013 6:16:19 PM

 

 

CLASSIFIED ADS

 

You may also like...
Nigerian appointed coach of Arsenal Academy

PDP wins Gombe council polls

Saraki will be impeached — Ndume

18 Nigerian pilgrims die in Saudi Arabia

Thousands of contractors, oil workers, now idle on...

FG to spend extra income from rising oil...

Nigerian diplomat guns for UN General Assembly Presidency...

Scores injured as PDP, APC supporters clash in...

IGP Ibrahim Idris makes U-turn, reinstates Kogi Police...

Immigration Officers’ Wives Association inaugurates Osun command chapter...

Fayose, Wike absent as Osinbajo meets state governors...

Boko Haram stones abducted girls to death

 

Latest News New twist in COZA Pastor’s rape saga: Police invites Timi, Busola Dakolo over alleged falsehood Banditry: Angry villagers take corpse to Zamfara Government House I am ready to lay down my life for Nigeria’s recovery — Obi American firm hoists Nigerian flag to honour exceptional employee Ruga: BNYL asks Igbo, Ijaw, Efik in North to return home as CNG’s deadline approaches Cultists wear Obas’ regalia, Ondo monarchs allege Insecurity: FG begins consultations with traditional rulers Police kill four teenage robbers in Edo Anambra community dismisses armoury rumour, threatens court action US-led war looming with Iran 1 killed, 8 injured in Ogun petrol tanker fire Enyimba Economic City receives further boost as IFC signs agreement

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (510,486 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (431,702 views) Shameless Genevieve Nnaji exposes breasts in public (373,713 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,878 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (282,646 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (247,317 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (239,476 views) 10 cars more expensive than Jets (224,177 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (221,361 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (208,926 views) Lagos plane crash: Journalist releases victims’ names (188,487 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (187,103 views)

 

NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (97) Business & Economy (4,358) Business Verdict (76) Columnists (1,075) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (636) Features (780) Global Business Monitor (396) ICT Monitor (54) International (3,730) Interview (193) Live Commentary (30) Love Matters (164) Maggie's Blog (342) News (48,876) Opinion (1,293) Pidgin (17) Politics (11,173) Religion (1,051) Sports (2,106) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera