Q1: Dangote Cement ramps up production at Okpella plant

Aliko Dangote

…while earnings per share reached ₦6.18

Africa’s largest cement maker, Dangote Cement, has ramped up production at its brand new plant in Okpella Edo state even as its earnings per share rose by 16.8% to 6.18 naira in the three months ended March 31, 2022. The increase in production at the Okpella plant is part of efforts to increase cement supply in Nigeria and ensure timely supply of products to customers in South-South geopolitical regions and Southeast.

Analysis of the cement giant’s quarterly results indicated that Dangote Cement sold a total volume of 7.2 Mt of cement across the group, with Nigerian operations accounting for 4.8 Mt while the rest of Africa achieved the balance of 2.4 Mt.

Dangote Cement Managing Director Michel Puchercos said in his comments that the company started the first quarter on a positive note despite new uncertainties brought by a highly volatile global environment. He said increases were recorded in revenue and profitability, leading to strong cash generation across the group. Profit after tax reached N105.9 billion, up 18% from last year, while Group EBITDA reached N211.0 billion, up 18.6% with an EBITDA margin of 51.1%.

Puchercos said, “Operationally, we are ramping up production at our Okpella plant and making good progress to deploy crushing plants in Ghana and Ivory Coast. Demand remained strong in all markets and we remain confident that Dangote Cement is well positioned to meet customer expectations despite these temporary challenges.

Continuing our efforts to create shareholder value, Dangote Cement has finalized the second tranche of its buyback program. Following the completion of the two tranches, Dangote Cement has now repurchased 0.98% of its outstanding shares. This share buyback program reflects the Company’s commitment to finding opportunities beyond the dividend to return cash to shareholders.

Puchercos added: “The unstable international context reinforces our efforts to increase the use of alternative fuels and the execution of our export-to-import strategy. Reducing our dependence on imported inputs and making our markets self-sufficient has never been more relevant from a regional perspective.

Our continued focus on efficiency, meeting strong market demand and maintaining our cost leadership strengthens our ability to consistently deliver superior profitability and value to all shareholders.

Dangote Cement is Africa’s leading cement producer with a capacity of nearly 51.6 Mta across Africa. A fully integrated producer from quarry to customer, it has a production capacity of 35.25 Mta in its home market, Nigeria. The Obajana plant in Kogi State, Nigeria, is the largest in Africa with a capacity of 16.25 Mta across five lines; The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12 Mta, while the Gboko plant in Benue State has 4 Mta; and Okpella plant in Edo State has 3Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s reliance on imported cement and transformed the country into a cement exporter serving neighboring countries.

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