Entrepreneurial Financial Analysis of Dangote Cement: Current Performance and Future Projections

Abstract

Dangote Cement Company is the leading cement manufacturing company in sub-Sahara Africa with a combined production capacity of 51.6MTA from its factories in ten countries of Africa. In 2000, the company made a strategic and ambitious decision to transit into a fully-fledged integrated manufacturing operation through the acquisition of Benue Cement Company and Obajana Cement in Kogi State. This was in response to bridge the infrastructure deficits in Nigeria and Sub-Saharan Africa, which necessitated increased demand for cement for construction and other infrastructural activities. Dangcem has leveraged on the economies of scale to offer quality products at competitive prices, dominating the market share of the product in Nigeria and sub-Saharan Africa which stood at 60.3% as at FY 2021. The company has achieved 13% in growth and 18% in revenue. The financial performance of Dangote Cement for the period under review confirms a strong and resilient performance based on superior performance and transparency as a publicly quoted company. This was achieved by optimizing existing assets and lowering cost to bring about increased output. The strategic implementation of these factors has positively impacted the financial performance of the company. This paper also made far reaching valuation and financial projections based on the historical data of the previous 5 years. Dangcem Group Revenue increased by 9.1% while administrative and selling cost rose by 22%. All these figures prove that the company is still at growth stage in her business cycle, and the various indices of growth and sustainability are in good stead.