Three Dangote companies listed on the floor of the Nigerian Exchange Group (NGX) had combined revenue of N1.51 trillion in the first nine months of 2022 (N2.01 trillion annualized).
This is contained in the unaudited results for the third quarter of 2022, published by the companies on the Nigerian Stock Exchange. The companies under consideration are Cemento Dangote, Azúcar Dangote andNascon Allied Industries.
The combined revenue reported by the Dangote companies compares with the N1.2 trillion reported in the same period last year. However, the higher operating cost reduced its combined profit from N296 billion to approximately N240.8 billion in the period under review.
Growing numbers despite headwinds: Despite inflationary pressure, where businesses and their consumers have had to deal with the rising cost of goods and services, businesses have grown through aggressive expansion.
- However, like other manufacturing companies, its production was affected by erratic fuel supplies, culminating in increased production costs. In addition, they have also suffered from the Epileptic power supply, slowing down the growth of manufacturers. This remains one of the main challenges for manufacturers in Africa’s largest economy, Nigeria.
- The effect of the falling exchange rate on companies cannot be overstated considering their exposure to imported commodities, which is based on forex.
- According to data tracked by Naijaonpoint, revenue from companies grew 27.54% yoy to 1.51 trillion naira in the nine months ending September 2022 from 1.24 trillion naira in the corresponding period of 2021.
However, rising cost of sales swallowed up much of the gain after rising inflation and depreciating exchange rates. The companies’ aggregate cost of sales stood at N739.860 million during the nine-month period versus N577.100 million in the prior year, representing more than 49% of the revenue generated.
Analysis breakdown:A cursory look at finances showed thatDangote cementANONYMOUS SOCIETYmaintained leadership in revenue generation, followed byDangote Sugar Plc andNascon Allied Industries plc.
Dangote cementreported revenue of N1.18 trillion in the nine months ending September 2022 or (N1.57 trillion annualized). Compared to the corresponding period of 2021, revenue increased by 15.2% from N1.02 trillion recorded in nine months of 2021.
In terms of its operations, the company is ramping up production at the Okpella plant and installing grinding plants in Ghana and the Ivory Coast, expanding its pan-African reach.
- For the third quarter of 2022, Cemento Dangote’s management recorded an increase in total cement sales volume of 6.2% at 20.8 metric tones in Q3 2022.
- According to the company, this was achieved, despite high inflation caused by a highly volatile global environment.
- To further increase cement supply across its operating base, the company has also commissioned its power plant in Okpella and is progressing well to implement grinding plants in Ghana and Côte d’Ivoire.
- Managing Director of Cementos Dangote, Michel Puchercos, who revealed this while presenting the Results for the third quarter of 2022 further explained that “To mitigate the impact of the significant increase in AGO and energy costs, we are strengthening our efforts to increase the use of alternative fuels.
- “So far this year, we have co-processed 101,553 tons of waste, which represents an increase of 77% in 2021. We are on track to start up our alternative fuel feeding system on lines I and V of Obajana and the Ibese line II in November.
- “In addition, we are increasing our investment in compressed natural gas, CNG, to reduce our use of AGO.”
dangote sugarrecorded revenue of N288.32 billionin nine months ending September 2022, an increase of 47.5% compared to Naira 195.5 billion in the same period last year. Similarly, net profit grew by 60.1% to 24.83 billion naira in the same period.
- Group Managing Director, Dangote Sugar Refinery Plc, Mr. Ravindra Singhvi Speaking on Q3 2022 results, he said Dangote Sugar Refinery, Nigeria’s largest domestic and commercial sugar producer with a refining capacity of 1.44 million MT, continued to implement its sugar downstream projects plans. and improved its scheme of external producers to support the economic growth of the immediate communities.
- He said the company’s goal was to develop a robust outsourcing plan with no less than 5,000 subcontractors when the projects are fully off the ground.
- This, he explained, was in addition to achieving other goals of his ‘Sugar for Nigeria Project’ plan.
- “The key focus of the sugar refinery is achieving the goals of the Dangote Sugar Backward Integration Projects and putting Nigeria on the path of sugar self-sufficiency and the world sugar map.
- “The health and safety of employees, as well as that of its partners, remain a top priority at the company’s operations at the Apapa refinery, its backwards sugar integration operations in Numan, Adamawa., and Tunga, Nasarawa.
- “All processes comply with the stipulated health and safety protocols,” he said.
In addition, Nascon Allied Industries Plc awareincome of N40.61 trillionsin nine months ending September 2022, representing an increase of 62.8% over Naira 24.9 billion in the corresponding period of 2021.
The increase was driven by price increases instituted through Nascon’s salt products. Across all of its business regions, North revenue (71.2% of revenue) continued to be the largest contributor to total sales, growing 196.0% YoY; while revenue from the Western (+14.6% y/y | 22.1% of revenue) and Eastern (+54.2% y/y | 6.7% of revenue) regions maintained the momentum seen so far in 2022.
- According to Cordros Capital analysts “Nascon’s third quarter 2022 result highlights the company’s resilience since the turn of the year despite the weak operating environment and intense competition from Royal Salt in the retail segment. The food producer kept margins at still high levels despite strong headwinds in the year. Given the resiliency seen so far in 2022, we expect the company to end the year positively, sustaining strong expansions in its top and bottom results.”
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