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Sunday,
June 21, 2020 / 08:00AM / Dangote Cement / Header Image Credit: Dangote Cement
The President of Dangote Group, Aliko Dangote has said that despite the
challenging economic situation in 2019, Dangote cement was able to sustain
54,000 jobs in four African countries, where the company has its operations.
The countries are Nigeria, Ethiopia, Senegal, and South Africa.
The business
mogul to shareholders at the Company's 11th Annual General Meeting
in Lagos that more jobs would be created as the company intensifies export of
clinker to other neighboring countries from Nigeria.
He said: "According to our 2019 socioeconomic impact assessment study specifically on
our operations in Nigeria, Ethiopia, Senegal, and South Africa, we sustained
54,005 jobs (direct, indirect, induced) in these four markets in the year under
review."
Dangote
Group is the highest employer of labour in Nigeria, outside the Federal
Government, and with its Refinery project coming up, the company will have more
than 100,000 Nigerians under his employment.
It would be
recalled that the Governor of
Central Bank of Nigeria (CBN), Godwin
Emefiele, while lauding the investment drive of
Dangote recently said he is excited with the progress made at Dangote Refinery and Petrochemical plant so far,
and that when it becomes operational, the refinery and petrochemical plant will
increase its workforce from the current 34,000 to over 70,000.
Briefing
shareholders at the 11th Annual General Meeting (AGM) held in Lagos
last week, Dangote, told the shareholders that the year 2019 was a strong year
given the tough business environment across most of its operating geographies,
disclosing that the Group recorded volumes of 23.7 million metric tonnes and
revenues of N891.7
billion.
He said; "We
recorded a strong EBITDA margin of 44.3%. As a result of this performance, the
Board has recommended for your approval a dividend of N16.00 per ordinary 50
kobo share."
Speaking on
the local Nigerian operations, he said, "Nigeria's cement market grew slightly
in 2019. We estimate that total market consumption was up between 2%-3% on the
20.7Mt estimated in 2018."
Dangote explained
that the modest performance was in spite of the fact that the market generally
was impacted negatively by the disruptions related to the 2019 election cycles,
heavy rains and the loss in land export volumes due to the border closure.
"Dangote Cement's
Nigerian operations remained at 14.1Mt in 2019, including export sales of
0.45Mt. Domestic sales in Nigeria were nearly 13.7Mt, compared to 13.4Mt in
2019. This implies a 2% growth mirroring the estimated GDP growth for the year.
However, land exports reduced to 0.45Mt from 0.7Mt for the full year owing to
the border closure in the last few months of 2019.
"The Bag
of Goodies promotion, launched in July, drove strong increases in our
Nigerian volumes in the third quarter", Dangote pointed out, adding that the
innovative marketing effort enabled the company to maintain its market share
despite the 4.5Mt new capacity which came into the market during the year.
He alluded
to the new feat by Dangote Cement in commencing export of clinker via shipping
from the Apapa and Onne ports to West and Central Africa, adding that the
management was encouraged by the performance of its offshore operations.
Dangote
noted that Pan-African operations sold 9.44Mt of cement in 2019, up 0.8% on the
9.37Mt sold in 2018. "Including clinker, Pan-Africa volume was 9.6Mt. The total
Pan-African volume represents 40.1% of Group volumes. Pan-African revenues of N282.7 billion were 0.2%
lower than FY 2018 and represented 31.7% of total Group revenues. The region's
EBITDA contribution of N47.9 billion
(before central costs and eliminations), represented 12.1% of Group EBITDA, at
a regional margin of 16.9%, compared to a margin of 17.3% in 2018."
According to
him, the stronger performance was recorded in Tanzania, Senegal and Sierra
Leone. "Looking ahead, we expect to further deploy our clinker and cement
export strategy across West and Central Africa. The completion of our 1.5Mt
grinding plant in Cote d'Ivoire is expected by the end of 2020."
Dangote
lamented that the world faces the stark reality of a major health crisis,
accompanied by a devastating impact on the global economy, noting that during
these times, the company's top priority remains the health and safety of its
employees, customers, suppliers and society at large.
"As Africa's
largest cement manufacturer, we take seriously our role of social
responsibility and we have taken deliberate steps to deploy resources to help
our communities overcome hardships in this crisis," he added.
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