April 24 (Bloomberg) -- Dangote Cement Plc, Nigeria’s largest company and the continent’s biggest producer of the building material, said full-year profit gained 24 percent as increased capacity improved sales.
Net income for the year through December advanced to 149.6 billion naira ($941.8 million) from 120.9 billion naira a year earlier, the Lagos-based company said in an e-mailed statement today. Revenue rose 24 percent to 298.5 billion naira.
Dangote Cement, owned by billionaire Chairman Aliko Dangote, said new capacity of 11 million metric tonnes accounted for a 20 percent increase in sales, even as flooding and a shortage of gas in Africa’s biggest oil producer affected margins.
“By the end of 2012 we were preparing to make Nigeria an exporter of cement to neighboring countries and in the first quarter of 2013 we realized that goal,” Chief Executive Officer Devakumar Edwin said in the statement. “Soon, we hope to be manufacturing cement in Senegal as we expand into other African countries to supply a basic but profitable commodity.”
Dangote Cement said on Jan. 2 that it expects a 38 percent jump in first-quarter net income this year, while revenue will rise 27 percent.
“Current trading is strong,” said Edwin. “We estimate that demand for cement in Nigeria increased by almost 16 percent in the first quarter of 2013 and I am pleased to report that our volumes rose by substantially more than the market’s growth rate.”
The company’s shares gained as much as 4.8 percent and were 2.6 percent higher at 160 naira at the 2:30 p.m. close in Lagos. The stock has advanced 25 percent this year, compared with an 19 percent rise of the Nigerian Stock Exchange All-Share Index.
To contact the reporter on this story: Chris Kay in Abuja at firstname.lastname@example.org
To contact the editor responsible for this story: Vernon Wessels at email@example.com