Dangote Cement, Nigeria’s largest cement producer, announces unaudited results for the nine months ended 30 September 2013, with pre-tax profit up 42.6% to N151.7bn.
Nigeria’s strong GDP growth continued in the second quarter of 2013, recording a gain of nearly 6.2% according to the National Bureau of Statistics (NBS). Growth in the Building and Construction sector remained strong at nearly 14.9%, which is consistent with the 14.2% increase in consumption of cement in Nigeria seen across the first six months of 2013.
Dangote Cement’s strong growth continued into the third quarter of 2013, with sales volumes up nearly 30% at more than twice the market’s rate of growth.
Group revenues rose by 28.7% to N289.0bn (Jan-Sep 2012: N224.5bn). Revenue from Nigerian cement operations (including haulage revenue) rose by 29.3% to N277.3bn (Jan-Sep 2012: N214.4bn), as a result of a 29.5% increase in volumes.
GreenView International in Ghana contributed revenue of nearly N11.3bn in the first half of 2013, an increase of 16.8% on the first nine months of 2012.
Gross profits rose by 39.4% to N189.4bn, despite the expected drop in the gas supply in the third quarter. Gross margin was 65.5%, ahead of the 60.5% achieved in the first nine months of 2012.
Administrative expenses rose by 46.4% to N15.9bn as a result of higher depreciation, salaries and CSR investments.
Selling and Distribution expenses rose by 67.5% to N17.7bn as a result of higher volumes and increased direct deliveries.
Group operating profit rose by 36.4% to N156.9bn, at a margin of 54.3% (Jan-Sep 2012: N115.0bn, 51.2%). After net financial costs of N5.2bn (Jan-Sep 2012: costs of N8.6bn), Group profit before tax was N151.7bn, up 42.6% on the N106.4bn achieved last year.
Following a deferred tax credit of N4.4bn, profit for the year was N156.1bn. Earnings per share rose by 46.1% to N9.19 per share, compared with N6.29 per share in the first nine months of 2012.