DANGCEM Group Q3 PAT up 33.3%

Dangote Cement, Africa's largest cement maker, has announced a strong financial performance with a 33.3% rise in profit after tax for the first nine months of the year. The Group CEO, Michel Puchercos, credits the company's ability to meet the strong demand in the market for this growth trend. In an interview with CNBC Africa, Puchercos delved into the key drivers behind the impressive numbers and the strategies employed by the company to navigate challenges. One of the primary factors contributing to the company's success is the robust demand driven by the increase in housing and infrastructure development across Nigeria and Pan Africa markets. Despite facing a slight drop in volumes, Dangote Cement leveraged its integrated distribution model with trucks and depots to ensure superior service and added value for customers. The company also emphasized stringent cost control measures to combat inflation and foreign exchange pressures, ultimately leading to increased profitability. Additionally, the expansion of production capacity both in Nigeria and abroad played a significant role in sustaining strong volumes and capturing market growth. Puchercos highlighted the seasonality of the cement market, noting that the third quarter typically experiences lower sales but remained optimistic about a strong performance in the fourth quarter. The CEO acknowledged the importance of price increases as a strategic tool to enhance bottom-line performance and emphasized the company's success in delivering higher performance in 2021 compared to the record year of 2020. Looking ahead, Dangote Cement anticipates continued strong demand and aims to outperform the market growth while addressing challenges such as foreign exchange scarcity through export expansion initiatives. The company's focus remains on achieving sustainable growth and profitability in the cement sector.