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Dangote Cement Forecasts N42 billion Profit After Q1, 2013

By on January 4, 2013

Alhaji Aliko Dangote

The management of Dangote Cement released their earnings forecast for Q1, 2013 towards the tail end of the preceding year.

The company says it expects revenues to reach N81.58 billion after the first three months of the year.

This represents an increase of 27% over and above the N64.1 billion it recorded after the first three months of 2012.

Profit before tax of N42 billion are expected, this represents a 39% increase over the N30.3 billion made over the corresponding period in 2012.

Finally net income is predicted to come in at N42 billion, also a 39% increase over Q1, 2012 levels.

The company has however been in the news recently to protest the cement glut which it blames the Ibeto group for being responsible for.

It said it shut down its Benue Cement plant in order to cut production. However some analysts say that Dangote Cement enjoys a monopoly on the industry and will continue to reap big profits at the detriment of cement consumers.

According to this school of thought, companies like Ibeto are necessary in order to checkmate the activities of the monopolists in the cement market.