Mr. Cement, Michel Puchercos, CEO of Dangote Cement, has done it – Dangote Cement joins MTN Nigeria as two companies which have broken the N1 trillion revenue mark. This was how I introduced him when he joined Dangote Cement from Lafarge – “Dangote hired Michel Puchercos from Larfarge to keep in-house a man who seems to be the best talent in the cement industry in Nigeria. Michel had performed wonders in Lafarge, transforming the company in many ways, and positioning it to battle Dangote Cement….
“Find ways to build the best team: nothing else matters than having the right person to manage all your factors of production. This man is a real Mr. Cement and he is rocking it in Nigeria. Yes, in the Forum a few months ago, I noted how he grew profits 1,284% in Lafarge while reducing CEO compensation by 10%!”
Today, he has put Dangote Cement in the history books: “Total sales came to N1.034 trillion, N142.525 billion higher than the figure for the year before, the income statement of the cement-maker obtained by Premium Times showed.”
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Nigeria’s biggest company Dangote Cement Plc Tuesday reported a 16 per cent surge in revenue for 2020, culminating in its biggest annual sales ever, Premium Times has the report.
Total sales came to N1.034 trillion, N142.525 billion higher than the figure for the year before, the income statement of the cement-maker obtained by Premium Times showed.
It is an astounding run in the face of the pandemic that has plummeted economies, limiting building and construction activities.
The group’s quarterly profit before tax (PBT) during the H1 2020, was N109.11 billion compared to the N42.19 billion reported at the same period the previous year. The quarterly revenue was N284.59 billion compared to the N212.06 billion reported the same period the previous year.
Defying the Pandemic, Dangote Cement Posts N276bn 2020 Profit
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Ok, we can see that he’s great at raking in fat numbers as revenues and profits. But they also need to stop fiddling with cement prices! What has become common in Nigeria is that self sufficiency in production doesn’t mean consumers pay less, and we are likely to see same with the refinery.
Looking at the numbers, how many bags were sold in 2020 compared to 2019? Because if you add N1000 to a product and sell 200 million bags, even without doing anything special, you have added 200 billion naira to your balance sheet! This is a number game, they didn’t invent new thing or shipped some bags for fencing in Mars and Jupiter.
We thought local rice would be cheaper, but we ended up paying numbers we never heard off, for all the years we ate foreign rice for fun here; something is fundamentally wrong with Nigeria and how we do business in the land.
In the year of Covid, banks brought in dizzying numbers, and cement has done same; we are really one of a kind.
Those who sold hand sanitizer and face masks should report their numbers too, because 2020 created a new market there.
Yes. He is able to do so because he controls more than 85% of the market share in the Cement industry. Thus he can fix prices as he likes. This is made possible because Federal Competition and Consumer Protection Commission (FCCPC), the agency responsible for checkmating this kind of unethical business practices are not doing anything in Nigeria. In UK, there’s a Competition Commission, an agency that ensures that no single company controls more than 25% of total market share in any industry. No merger and Acquisition takes place without the approval of this agency. Hence no single company is able fix prices anyhow. But here in Nigeria, Dangote is fixes cement price anyhow because there’s no strong competition anywhere.
How can Nigerians be paying NGN 3,300 for a bag of cement which is 100% produces locally? The so called Michel Pucherous is not a magician, he’s not doing doing anything special. Millions of Nigerians can do better given the same business environment.
Nigerians will continue to suffer in the hand of Dangote until FCCPC stands up to their responsibilities
I agree
Cement was sold 4200 earlier this week they are extorting the poor with the government approval
All lies. If another company sells cement at a cheaper price, what the guy will do is to sell his cement at a ridiculous price to chase those ones out of market. Does he not export cement out of the country and sells at a cheaper rate in those countries?
You are on point. It’s exploitation all the way. Why do we praise people for the wrong reasons.
Very true an this we keep saying. Everything except his expatriate staff is gotten in Nigeria. Why can’t cement be 2000 per bag or less. Even his trucks are a minor issue on our roads. There is an issue with Nigeria and we know it but they are too powerful to be stopped
I agree with you 100%. The means is annoying
What do you actually call profits in business? When you enjoy almost absolute monopoly and pay your staff slave wages. You keep declaring staff wages and welfare as revenue.A place where a so called ‘senior’ staff cannot afford a bag of rice without taking a loan.As a group, Dangote has the worst pay structure in the industry.Complain and DSS will come after you with trumped up charges. Working in Dangote is modern day slavery.Dangote, operates an oppressive pay structure. You have the well paid management staff that is used to implement inhuman work ethics on the slaves ( other category of workers).Sample the opinion of workers in the cement section and hear how they work without proper protective gears.They are being paid peanuts to die gradually.
Compare the Naira equivalent of how much a bag of cement is selling in America and great Britain before you mislead the public with your uninformed figures. This is in spite of the cheap energy rates in those countries that powers their industries over there. Juxtaposing that with the extra efforts dangote puts in to generate his own power (or do your country generates power to sale?) , 12,000 trucks to deliver his product (or do you have cheaper cargo trains in Nigeria?). Please jealously is a bad compass. Africa is rising through Dangote because he is the benchmark foreign investor are now waking up to opportunities that abounds here. You might be a professor, but it only stops at that; a pen pusher cos u don’t create jobs! Dangote’s economic importance to society outweighs 1 million of your kind. Amassing certificates has proven to be zero work done if it does not generate revenues to the government. Bye must educated.
Very correct my brother, they read and get plenty degrees that are useless as far as am concerned, a road side vulcanizer is more useful and productive than all these theoreticians every where without economic value to the society.
Dangote has been a victim of myopic analyst.Thanks dangote for bringing competition to cement industry.Gone are the days when folawiyo cement import and do only bagging in nigeria.lafarge in the past bring cement via their subsidiary in contonou to meet the high demand in Nigeria.GOD bless Dangote for breaking their monopoly and become the biggest in Africa.Dangote is one of the most Patriotic entrepreneur have seen.Despite all short coming in Nigeria still invest in Nigeria.The same will echo in oil and gas.When mojour marketers are not investing in nigeria.but the took the bill by the horne and do what the govt cannot do.GOD, Allahu bless Alimo DANGOTE.
Afodun musbau.
What is Dangote Cement celebrating? Is it because the have over price products to the detriment of Nigerian? Well they are in a fall country where price control policies are not effective.
Dangote is patriotic. May God give Nigeria more of Dangote
Some are just good at Looting the Public Treasury. He was never a Govt Contractor
Both sides of the arguments had strong points. Someone has to create a monopoly before it can be broken eventually, the Rockefeller did in Oil at the turn of the century in the United States, same with the Cernegie in steel and Vanderbilt in locomotives..Thanks to the Roosevelt administration that broke these monopolies. It is Dangotes turn in Cement and Oil and gas in Nigeria. I believe, Dangote is setting the ground work for other entrrpeneurs in Nigeria, and in the quests for more profit developing the necessary infrastructures in Nigeria. Other people will come to set up the Electricity, transportation and logistics to distribute more of the products including the ones from Dangote. All these will contribute to development of the country and entire continent and creating more and more jobs . It’s a common good.