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Dangote Cement expends N217bn on pan-African expansion

By on May 3, 2015

Dangote Cement Plc invested N217 billion on its expansion programme across African countries during the 2014 financial year. The countries are Nigeria, Senegal, Cameroun, Congo, Ghana, Cote d’Iviore, Sierra Leone, South Africa, Ethiopia, Tanzania  and Zambia.

The amount shows an increase of 55 per cent above the N140 billion invested in projects and normal capital expenditure in 2013.

In his report to the shareholders at the sixth annual general meeting in Lagos on Wednesday, Chairman of Dangote Cement, Alhaji Aliko Dangote said 2014 was the year in which the company achieved significant progress it’s goal to become a truly pan-African manufacture and distributor of cement.

“We began the year with three factories in Nigeria, a small import operation in Ghana and several building sites across Sub-Saharan Africa. As a result of the sizable investments that we have made over the past few years, Dangote Cement ended the the year with new lines in Nigeria, factories becoming operations in Senegal and South Africa,” he said.

According to him, Dangote Cement  capacity increased from 21 million tonnes in January to more than 34 million tonnes at the end of 2014.

“As we were extending our geographical footprint across Africa, we consolidate our position in Nigeria by increasing our capacity  from 20 to 29 million tonnes. I believe this has given us an excellent base from which to capture the growth in Nigeria, perhaps the most attractive cement market in the whole of Africa, averaging nearly a 10 per cent annual in ease since 2004,” he said.

The chairman disclosed that apart from expanding the scale and reach of its business, the company took many steps to make it more efficient and more accountable by welcoming two new independent directors and by engaging with experts in risk management, environmental care, social responsibility and better governance.

“As a result of all these initiatives, I believe our company is well on its way to be a global and respected force in cement production, operating odeon and efficient plants in exiting growth markets that will generate substantial returns for shareholders for many years to come,” he said.

Meanwhile, shareholders  of Dangote Cement Plc have  approved the N102 billion dividend recommended by the board for the 2014 financial year. They commended the board and management for the performance of the company amid the challenging operating environment.

Dangote Cement ended 2014 with a revenue of N392 billion up from N386 billion in 2013. Administrative expenses rose from N25.9 billion to N274 billion, while sales/distribution expenses increased from 35.6 billion to N37.4 billion. Finance cost soared by 140 per cent from N13.7 billion to N32.9 billion. Profit before tax stood at N184.7 billion, compared with N191 billion.

But the company paid an income tax of N25.2 billion in 2014, as against a tax credit of N10.5 billion 2013. The N25 billion tax charge resulted from the expirations of the tax exemptions on some lines of the company’s business.
Consequently, the company ended the year a PAT of N159.5 billion, compared with N201 billion in 2013.

 

[ThisDay]