Dangote Cement Plc. (DANGCEM) released its H1:2019 financial scorecard, reflecting struggling sales in Nigerian market, which led to a 3.05% revenue decline to NGN467.73bn. In Nigeria, the intense competition from additional capacity of BUA Group and the impact of early rainfall, left its trail on top line. Also, aggressive trade discounts by the players waned the effect of the 7% price increase, as we estimated that average price only increased marginally by 1.04%. Thus, volume and revenue dropped by 2.75% and 4.60% to 7.60MT and NGN328.29bn respectively while market share was down to 64% from 66% in same period of 2018. On the other hand, positive scores from Pan-African markets outweighed the woes with volume and revenue increasing by 2.67% and 1.01% to 4.69MT and NGN140.09bn respectively. The Pan-African result was enhanced by 127% volume growth in Tanzania, owing to a lower base period that was affected by frequent shut downs; improved volumes (+89%) on the back of marketing efforts in Sierra Leone; and price increase coupled with 13% volume growth in Zambia. On the flip side, Ghana was subdued by unavailability of clinker which brought volumes down by 37.25% while the South Africa segment remains muted by unfriendly economic condition. Kindly find attached the full report.
Earnings Update- DANGCEM: H1 2019.
Dangote Cement Plc. (DANGCEM) released its H1:2019 financial scorecard, reflecting struggling sales in Nigerian market, which led to a 3.05% revenue decline to NGN467.73bn. In Nigeria, the intense competition from additional capacity of BUA Group and the impact of early rainfall, left its trail on top line. Also, aggressive trade discounts by the players waned the effect of the 7% price increase, as we estimated that average price only increased marginally by 1.04%. Thus, volume and revenue dropped by 2.75% and 4.60% to 7.60MT and NGN328.29bn respectively while market share was down to 64% from 66% in same period of 2018. On the other hand, positive scores from Pan-African markets outweighed the woes with volume and revenue increasing by 2.67% and 1.01% to 4.69MT and NGN140.09bn respectively. The Pan-African result was enhanced by 127% volume growth in Tanzania, owing to a lower base period that was affected by frequent shut downs; improved volumes (+89%) on the back of marketing efforts in Sierra Leone; and price increase coupled with 13% volume growth in Zambia. On the flip side, Ghana was subdued by unavailability of clinker which brought volumes down by 37.25% while the South Africa segment remains muted by unfriendly economic condition. Kindly find attached the full report.