Dangote Cement Plc, Africa's biggest producer of the building material, reported first-half revenue that was little changed from previous year after sales volumes declined in some of its markets due to the coronavirus pandemic.
Revenue for the six months through June increased 2% to 476.9 billion naira ($1.2 billion) while net income rose 5.8% to 126 billion naira, it said in a Friday statement to the Nigerian Stock Exchange. Volume of cement sold fell 1.5% to 12 million tons.
“Lockdown in South Africa, Congo, Ghana and Nigeria in most of April affected our operations,” the company said. Most economies on the continent, where the company has operations, have been hampered by movement restrictions to contain the Covid-19 pandemic.
The company, controlled by Africa's richest man, Aliko Dangote, started the shipment of clinker to West Africa from its home market Nigeria in June. It's looking to begin export to Central Africa in the second half of the year to boost revenue, Michel Puchercos, chief executive said. “We continue to be in a strong position despite the economic downturn,” Puchercos said.
“The topline was helped by a moderate increase in unit pricing,” Uwadiae Osadiaye, an analyst at Lagos-based FBNQuest, said in emailed note. The results “are quite decent considering the very difficult business environment,” he said
The stock closed unchanged on Friday in Lagos at 134.20 naira a share. It has declined 5.5% this year, compared to a 9% retreat of the 153-member Nigerian Stock Exchange Main-Board Index.
©2020 Bloomberg L.P.
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