The Chief Executive Officer, Dangote Cement, Michel Puchercos has revealed that significant increase in energy and AGO costs are impacting negatively on production and supply of cement products in the country.
He stated this while reacting to the company’s financial results for the second quarter of 2022 on Monday.
According to the cement company’s results made available on the website of the Nigerian Exchange (NGX), revenue rose by 17 percent, compared to N690.55 billion recorded in 2021.
Dangote Cement reported group sales volume of 14.2Mt, consisting of 9.3 Mt done by Nigerian operations while the balance was contributed by operations in other African countries.
Puchercos, speaking on the result said: “Despite the elevated inflation due to a very volatile global environment, the first half of 2022 has been positive. We recorded increases in revenue and EBITDA that drove strong cash generation across the Group.
“We recorded revenue of N808.0 billion up 17 percent compared to last year and Group EBITDA of N373.2 billion, up 6.3 percent with an EBITDA margin of 46.2 percent.”
He stated that the volatile international context is strengthening efforts to ramp up the usage of alternative fuels and execution of export-to-import strategy. The company, according to him, is reducing dependence on imported inputs and making the local markets self-sufficient.
“Our continuous focus on efficiency, meeting market demand and maintaining our costs leadership drives our ability to consistently deliver superior profitability and value to all shareholders” he added.
Meanwhile, the company said in a bid to ramp up production, it is set to deploy grinding plants in Ghana and Cote d’Ivoire.
Already, the cement company has grinding plants in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).