Real Estate investment and infrastructure spending drove our profits up – Dangote Cement

The 40% increase in the sales volume drove profits up by 135.1%.

By Omokolade Ajayi

 Michel Pucheros, Chief Executive Officer of Dangote Cement, has disclosed that the strong appetite for real estate investment and the recovery of infrastructure spending by the government led to a 40% increase in the sales volume of the leading cement maker in Nigeria.

This statement was made by Mr Pucheros today on the Group’s website, after its third-quarter result was released today.

He reiterated that despite a challenging Q2, Dangote cement reached a record high EBITDA margin of 24% in the third quarter of 2020, and a Group net profit of N82 billion, which is 135.1% higher than the profit reported by the Group in the third quarter of 2019.

Pucheros disclosed that the impressive performance in the third quarter of 2020, despite an unimpressive second-quarter, was owed largely to the strong recovery of the cement market in Nigeria and Pan-Africa.

What they are saying

He said:

“I am delighted to report that Dangote Cement experienced its strongest quarter in terms of EBITDA and strongest third quarter in term of volumes. Despite a challenging environment, Group volumes for the nine months were up 6.6% and Group EBITDA was up 17.1%, at a 46.6% margin.”

He gave more insights into the performance of the cement maker ion the third quarter.

“This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging Q2. In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads.

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“Sales volumes in Nigeria were up 40% in the quarter and Pan-Africa reached a record high EBITDA margin of 24% in the quarter. In the quarter, our Group net profit was up 135.1%,” he said.