Cement manufacturing giant, Dangote Cement
Plc maintained its upward profitability swing into the third quarter
ended September 30 with a pre-tax profit of N105.8 billion. The figure
represents an increase of 13.5 per cent over and above figures recorded
in the corresponding period for last year.
In the same vein, the company's sales revenue moved up to N208.3 billion, an increase of 19.8 per cent when compared to the revenue generated during the same period last year.
Gross profit of N130.0billion was up 22.1per cent at a margin of 62.4 per cent (Jan-Sep 2011: N106.5bn, 61.3 per cent). The improvement reflects a mixture of positive and negative influences on margin.The cessation of lower-margin imports and their replacement with locally produced cement has helped to reduce the cost of sales, but the potential gains in margin were largely offset by increased use of furnace oil (LPFO) at higher-than expected levels during 2012.
A statement of unaudited result of performance of the company in the last nine months indicated that cement sales climbed up to 7.7 million tonnes, with all cement sold locally produced.
In spite of these achievements, the company said the third quarter sales were seriously affected by heavy rainfall and flooding but that "margins rising as gas supplies return to normal.
Speaking on the results in Lagos, Chief Executive of Dangote Cement, Devakumar Edwin said lamented that conditions in the third quarter of 2012 were very challenging because of the serious flooding that affected Kogi and Benue states, where two of our plants are located.
"In spite of these problems we have increased sales by nearly 20 per cent in the first nine months of 2012, with sales of locally produced cement rising by nearly 51 per cent. Even in the difficult third quarter we increased shipments by nearly eight per cent during a period in which we estimate the industry increased volumes by less than four per cent, so it is clear we are increasing our market share.
"The gas supply is returning to normal and this will drive an increase in profitability in the second half of the year."
He added; "We have strengthened our team with key appointments in the regions and with the appointment of a new Chief Financial Officer, Tim Surridge, who has considerable experience of helping organizations improve governance and disclosure."
source: leadership
In the same vein, the company's sales revenue moved up to N208.3 billion, an increase of 19.8 per cent when compared to the revenue generated during the same period last year.
Gross profit of N130.0billion was up 22.1per cent at a margin of 62.4 per cent (Jan-Sep 2011: N106.5bn, 61.3 per cent). The improvement reflects a mixture of positive and negative influences on margin.The cessation of lower-margin imports and their replacement with locally produced cement has helped to reduce the cost of sales, but the potential gains in margin were largely offset by increased use of furnace oil (LPFO) at higher-than expected levels during 2012.
A statement of unaudited result of performance of the company in the last nine months indicated that cement sales climbed up to 7.7 million tonnes, with all cement sold locally produced.
In spite of these achievements, the company said the third quarter sales were seriously affected by heavy rainfall and flooding but that "margins rising as gas supplies return to normal.
Speaking on the results in Lagos, Chief Executive of Dangote Cement, Devakumar Edwin said lamented that conditions in the third quarter of 2012 were very challenging because of the serious flooding that affected Kogi and Benue states, where two of our plants are located.
"In spite of these problems we have increased sales by nearly 20 per cent in the first nine months of 2012, with sales of locally produced cement rising by nearly 51 per cent. Even in the difficult third quarter we increased shipments by nearly eight per cent during a period in which we estimate the industry increased volumes by less than four per cent, so it is clear we are increasing our market share.
"The gas supply is returning to normal and this will drive an increase in profitability in the second half of the year."
He added; "We have strengthened our team with key appointments in the regions and with the appointment of a new Chief Financial Officer, Tim Surridge, who has considerable experience of helping organizations improve governance and disclosure."
source: leadership
Good hardworking!
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