Nothing takes us by surprise in the just released 2021FY financial scorecard of Dangote Cement Plc. Revenue performance was very much in line with expectation, exceeding our projection by only 47bps. Also, earnings came in shy of expectation by only 0.20%. Details reveal that revenue from its Nigerian business grew by 37.98% YoY to NGN993.40bn during the period (vs. NGN719.95bn in 2020FY). This was due to volume growth supported by enhanced distribution and strong local demand. While volume dispatch grew by 13.8% from 15.94Mta in 2020FY to 18.61Mta in 2021FY, the upward price review witnessed in Q2:2021 also contributed to the improved sales value
reported. Operations in pan-Africa was mixed with volume growth recorded only in Tanzania (+56.00%), Congo (+25%), Ethiopia (+11%), Cameroon (+3%) and Senegal (+0.63%). Overall, volumes in pan-Africa were up by 8.7% which crystallized into a 28.72% contribution to group topline. Hence, group volume was up by 13.81% to 29.27Mta (vs 25.70mta in 2020FY) and revenue by 33.79% to NGN1.38trn (vs NGN1.03trn in 2020FY).
