In 2020FY, Dangote Cement Plc. proved its mettle as it continued on the path of growth and like we expected, reached a revenue milestone. The company was unhindered by challenges from the COVID-19 pandemic as seen in the impressive year-on-year performance recorded in its home market and some pan-African locations. In Nigeria, the low interest rate environment in 2020 made an investment case for the real estate sector and as such, propped up cement demand. With support from its national consumer promotion (bag of goodies season 2) programmme, DANGCEM continued to enjoy significant market share. Thus, the company sold 15,739 Kilotons of cement in Nigeria in 2020FY (up 11.47% YoY). Also, adding to the success of its maiden clinker export in June, the company pushed out six more vessels via its Apapa terminal and continued cement exports by road. Hence, total export volumes for the year amounted to 197 Kilotons. Overall, its Nigerian operations could boast of a total sales volume of 15,936 Kilotons (vs 14,119 Kilotons in 2019FY), that earned the company a revenue of NGN719.95bn (vs NGN610.25bn in 2019FY). Giant strides were also recorded in some of its Pan-African operations, with Congo leading the pack with a 59.00% increase in sales volume and Senegal at full capacity utilization. Other Pan-African businesses also performed better year-on-year, with the exception of Zambia and Ghana where sales volumes declined. Consequently, Group sales volumes for the year was 25,721 Kilotons – an increase of 8.61% YoY. Thus, the company’s total revenue grew by 15.98% to NGN1.03trn (vs NGN891.67bn in 2019FY). For 2021, we expect revenue to grow by 14.24% to NGN1.18trn. Our optimism stems from the continued adoption of cement for road construction and higher export volumes (on the back of the recently reopened borders and AfCFTA).
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