Business Briefs
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ONNE Van der Weijde, chief executive officer, Dangote Cement Plc, has said that the diversification of the company into other parts of Africa has started yielding positive results. Weijde, who disclosed this at the company’s fact behind the figures presentation ceremony in Lagos, noted that Dangote Cement increased its top line by 20.6 percent to N292.2 billion in six months to June 30, from N242.2 billion in the corresponding period of 2015.
According to him, Nigeria grew by 4.2 percent to N216.6 billion, West and Central Africa grew its revenue significantly by 192 percent from N17.1 billion to N49.9 billion for the first half of 2016. South and East Africa, he said, grew its top line by 50.9 percent to N26.1 billion from N17.3 billion recorded for the corresponding period of 2015. The company ended the H1 with a profit after tax of N103.4 billion compared to N121.8 billion declared in H1 2015.
Weijde said the company will begin 100 per cent coal production in the fourth quarter of 2016. This, he said, will help to solve the problem of gas shortage and foreign exchange volatility and increase profitability. According to him, some of the company’s plants in Obajana in Kogi State and Ibese in Ogun State have already started using locally purchased coal for operation, blending with imported coal to assure optimal quality.
“Our investment in coal is enabling us to reduce our dependence on both oil and gas as fuel sources, thus protecting our production from disruption and improving margins. The devaluation of the naira will obviously have an impact on costs and our priority will be to protect margins,” he said.
Weijde said: “We have achieved strong sales growth in Nigeria and are readying more coal-burning facilities that will improve our fuel security, reduce our dependence on LPFO and even gas and help to restore our margins. As we have previously made clear, our focus will be to protect margins through cost controls and adjustment of prices,” he said.
— Aug 15, 2016 @ 01:00 GMT
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