Skip to content

African Cement News

Dangote Cement records healthy margins despite slide in H1 2022 profit

Dangote Cement (DangCem) is the most valuable cement company and the second most valuable stock on the Nigerian Exchange (NGX) with a market capitalization of N4.17 trillion, twice the size of BUA Cement Plc and Lafarge Cement Plc combined.

The largest cement company in terms of production capacity of 51.6 million metric tonnes/pa compared to BUA Cement’s 11 million metric tonnes/pa and Lafarge Africa’s 10.5 million metric tonnes/pa, has recorded a 10% decrease in its half-year (H1) 2022 profit, due to higher foreign exchange pressures and energy costs incurred, which have become trending systematic risks.

The Industrial Goods Sector Company’s financial statement as released on the NGX shows that profit after tax dipped by 10.19% to N172.105 billion compared to N191.631 billion in HY 2021; revealing a dip in net profit margin by 23% to 21.31% from 28% in H1 2021.

Lafarge cement sold to Chinese

Lafarge hereby provides a further update to shareholders and the market that on 11th June 2021 an agreement for the sale and purchase of 75% of shares in the Company was executed between the Majority shareholders Financière Lafarge SAS (“Financière Lafarge”), Pan African Cement Ltd (“Pan African”) and Huaxin (Hainan) Investment Co., Ltd. (“Huaxin”) whereby Financière Lafarge SAS and Pan African Cement Ltd have agreed to sell their shares to Huaxin at an enterprise value of USD 150 million (ZMW 3.3 billion) for 100% of the Company (the “Transaction”). The closing of the Transaction is subject to the terms and conditions set out in the agreement between the parties and to customary regulatory approvals required both in Zambia and China.

Source :

Dangote Cement Unfolds Measures to Meet Demand, Reduce Price

Dangote Cement Plc yesterday listed steps it’s taking to increase the supply of cement in order to meet the huge demand for the commodity as well as reduce the price of cement.

Dangote Group’s new Chief Commercial Officer, Mr. Rabiu Umar, at a media briefing in Lagos, yesterday, expressed optimism that the price of cement would decrease once Dangote Cement, a dominant player in the sector brings into operation its new line at Obajana, Kogi State, as well as its new line in Okpella, Edo State and the reactivation of its Gboko plant that has been shut down for almost four years.

Apart from increasing its volume of output, the Dangote Cement has also put a hold on its export market in order to ensure that Nigeria has a sufficient supply of cement, he said.
The price of cement in the country has risen sharply from about N2,500 as of the fourth quarter of 2020, to about N4,000 presently. Dangote Cement controls 60 per cent of the market in Nigeria.

Explaining the reason for the surge in cement price, Umar said: “There is a surge in demand immediately after COVID-19 disruption. This surge in demand is not a localised Nigerian phenomenon as a couple of countries around the world like Pakistan and Mexico, among others are seeing a rising incident of demand for cement.

“So the question is what is the Dangote Cement Plc doing to bring it down? First and foremost we have invested in a new line that has been completed in Obajana, which is waiting for the power plant for us to start bringing out more cement.

“We also have a new line in Okpella, Edo State, which is going to start operation very soon. Also we have restarted one of our plants in Gboko, Benue State that has not worked for almost four years all in a bid to make sure that there is enough production to supply the market.”

He added: “What drives price is the interplay of the market forces of demand and supply. As a business, we have not increased our price. And the only way to deal with this upsurge is to have adequate capacity to supply the market by producing more to prevent a break in the supply chain that will lead to arbitrage.

“So, what we are trying to do is to ensure that we increase our supply of cement in the market and we believe that will help to manage the skyrocketing prices of cement.

“We have also stopped exporting cement to ensure that we meet local demand in spite of the fact that the foreign exchange from exports is very valuable in times like this.”
He added that it would be difficult to control ex-factory prices, which are responsible for propelling the prices upward because of the number of intermediaries in the distribution chain.

Dangote Cement, according to him, has 500 distributors and about 57,000 retail outlets in the country that would not be easy to police in order to enforce uniform price regime.

“Nobody can say when the price will drop, which is best left for the forces of demand and supply. All these new capacities we are developing are things we are doing as a responsible business organisation to ensure that we have enough supply that will meet the demand and shift the market to a new equilibrium since pricing is nothing but the willingness to buy and willingness to sell at a price within a given period. But what we are certain of is that demand and supply will always determine the price of any given product at any time,” he added.

Umar stated that the Dangote Cement would be supplying additional 15,000 tonnes of cement per day to help to stabilise the domestic price of the product, in the next 90 days.

“We are making record sales, meaning that we are selling more than we did over the past years. That tells you that there is a surge in demand. So, we are in a sold-out situation in the country. The main test of demand is when you have more capacity to supply the market,” he stated.

Dangote Cement is also injecting 2,000 brand new trucks in order to make sure that the distribution of the increased output of cement to the market is taken care of.
“All these efforts will lead to the creation of 3,000 new direct jobs in the economy,” Umar said.

He added that the group has a system that takes care of proper governance of its distributors.

“We ensure regional equity in our distribution to ensure price stability. Our philosophy is to stay with our customers who have been with us for many years,” he said.

Source :

Arvind Pathak, Deputy GMD of Dangote Cement resigns

The Deputy Group Managing Director of Dangote Cement has resigned his role on the Board of the company.

Dangote Cement Plc has announced the resignation of its Deputy Group Managing Director, Arvind Pathak.

In line with the disclosure issued by the company, the Board of Directors of Dangote Cement after accepting Pathak’s request disclosed that his resignation will take effect from the 25th of February 2021.

The Board of Dangote Cement appreciates him for his commitment and contributions to the Board, and also wishes him well in his future endeavours.

What you should know
Pathak was appointed to the Board of Dangote Cement Plc on October 29, 2019, as Deputy Group Managing Director.
Prior to his appointment as Deputy GMD, he was the Chief Operating Officer of Dangote Cement, a position he held between 2018 and 2019.

Prior to joining DCP, he has worked in various leadership roles in the cement industry, he has 30 years of experience in the cement industry.


Coronavirus Affects Dangote Group

Africa’s richest man, Aliko Dangote has reportedly suffered a huge loss of N240 billion in five hours due to coronavirus on Wednesday, March 11.

This is equivalent to about GHS3.94 billion.
The ‘Dangote Group’ suffered huge losses just after the World Health Organisation (WHO) declared coronavirus a pandemic (spreading in multiple countries around the world at the same time) which originated from Wuhan, China.

According to the Nation, Dangote Cement Plc which is Nigeria’s most capitalised quoted company and accounts for more than 20 per cent of the total market capitalization, led the decline with the maximum daily allowable drop of 10 per cent or N17, which is equivalent to net depreciation of N289.68 billion.

Dangote Sugar Refinery (DSR) Plc and NASCON Allied Industries Plc lost N1.8 billion and N3.05 billion. Dangote Cement’s share price dropped by N17 from N170 to close at N153. NASCON Allied Industries declined by N1.15 to close at N3.05 while DSR lost 15 kobo to close at N9.75 per share.