Dangote Cement Full-Year Profit Gains 39% as Nigeria Sales Rise

Dangote Cement Plc (DANGCEM), Nigeria’s largest company and the continent’s biggest producer of the building material, said full-year profit gained 39 percent as sales in the local market surged.

Net income for the year through December rose to 201.9 billion naira ($1.2 billion) from 145.1 billion naira a year earlier, the Lagos-based company said in an e-mailed statement today. Revenue rose 29 percent to 386.2 billion naira, while sales in Nigeria increased 28 percent to 13.3 million metric tons.

The company, controlled by billionaire Chairman Aliko Dangote, has production capacity of 20.3 million tons across three Nigerian plants. It plans to expand into 13 other nations on the continent, bringing total capacity to more than 60 million tons by 2016.

“As the Nigerian cement market grew by a strong 15.6 percent, we managed even better growth,” Chief Executive Officer Devakumar Edwin said in the statement. “We increased our margins despite continuing disruption to our gas supply.” Nigeria’s economy has expanded 6 percent a year since 2006, according to the World Bank.

The company said it would more than double its dividend to 7 naira a share, compared with 3 naira the previous year. The stock declined 0.9 percent to 228 naira as of 1:36 p.m. in Lagos, and has gained 4 percent this year. That compares with an 8.6 percent decline on the 193-member Nigerian Stock Exchange All-Share Index.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net John Bowker, Ana Monteiro

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