After experiencing a dip profit in 2014, Dangote Cement started 2015 with an impressive first quarter, having grown its profit by 32%, indicating a bright future for shareholders.
The Chairman of Dangote Cement Plc, Alhaji Aliko Dangote recently assured shareholders at the recent AGM to be full of hope for a better future for their investments in the company.
According to him, given the pan-African expansion drive and other strategies, the leading cement manufacturing firm will deliver improved performance going forward.
Dangote Cement recorded a growth of 11% to N114.7 billion, while profit before tax (PBT) and profit after tax (PAT) grew much faster by 32% to N70 billion and 42% respectively.
In the opinion of DLM analysts, Dangote Cement has room for strong growth by optimising returns on capex.
“With the additional capacity expansion of 7.0mmt.expected in FY’15, coupled with expected price stability and a concentration towards higher margin plants, we raise our revenue guidance for FY’15 and FY’16E, respectively. Hence, we expect Dangote Cement to post revenue growth of 20% in FY’15.
Consequently, with a better 1Q’15 performance, we upgrade our volume sales estimate by 10.83 per cent to 15.3mmt for FY’15.
Given the expected better regional sales matrix, we envisage realisations and margins to improve due to economies of scale and energy mix strategy initiated by the company resulting to lower energy used/tonne and unit cost of power,” they said.
