Dangote Cement Plc’s Board of Directors has announced the resignation of Olusegun Olusanya as an Independent Non-Executive Director.
In a statement signed by the company’s Secretary, Mahmud Kazaure, the Board made known that Olusegun voluntarily resigned from the company.
Olusegun Olusanya’s illustrous profile
Olusegun was appointed to the Board in 2010. He was Deputy General Manager, Finance and Strategic Planning at Savannah Bank Nigeria PLC, Executive Director at Afribank Nigeria Plc and Executive Director, Union Bank PLC between 1993 and 1999. He was also Chairman of the National Bank of Nigeria Limited and sits on the board of several companies. He is Vice Chairman of Meristem Securities Limited and Non-executive Director of Tripple Gee & Co PLC. He is an accountant and obtained a B.Sc in Accounting from the London School of Economics and an M.Sc. in Economics & Finance.
Dangote Cement Plc had released its Q3 2018 result with an Earnings Per Share (EPS) growth of 1.6% Year on Year to N2.64.
In the result breakdown by an investment house, ARM Securities, Dangote Group’s revenue grew by 6.3% Year on Year to N202.9 billion driven by higher volumes in Nigeria and the Pan African businesses, despite relatively softer prices across markets.
Starting off with Nigeria, while the business recorded price erosion of 3.9% Year on Year to N43,187 per tonne, sales volume grew 6.2% Year on Year to 2.5metric tonns, thus removing the moderation in price to record revenue growth 2.01% Year on Year to N127.2 billion. While for the rest of Africa, volumes grew by 15.9% Year on Year to 2.5metric tonns reducing the effect of a 1.4% decline in average prices to N30,728 per tonne driving the revenue higher by 14.3% Year on Year to N75.6 billion.
However, input cost grew at a much faster pace (+9.46% Year on Year to N90.1 billion) boosted by higher salaries and depreciation expense. Salaries and related staff costs rose by 39.4% Year on Year to N8.7 billion while depreciation expense rose by 13.8% Year on Year to N16.2 billion moderating the impact of declines in energy cost per tonne (8.9% Year on Year N4,860) and materials consumed per tonne (7.1% Year on Year to N5,674). Consequently, gross margin contracted by 1.3% Year on Year to 55.6%.
Elsewhere, operating expense grew by 19.1% Year on Year to N48.4 billion, driven by higher haulage and depreciation expenses. Particularly, haulage cost per tonne in Nigeria rose 44.4% Year on Year to N4,541. As a result, OPEX to sales grew to 23.9% (+2.6% Year on Year). The depressed margins coupled with higher operating expense drove operating income lower by 4.7% Year on Year to N66.3 billion with respective margin at 32.7% (-3.8% Year on Year).