(Ecofin Agency) - Nigerian tycoon Aliko Dangote’s Dangote Cement continues to face difficulty in its expansion journey in Africa. According to official financial statement of H1 2019, the company posted a turnover of 140 billion Naira ($386 million) from operations across the continent, just 1% higher than the 138.6 billion Naira the same period in 2018.
EBIDTA (earnings before interest, depreciation, taxes and amortization) over the period was 23.9 billion Naira, down the 25.9 billion Naira in H1 2018.
Last year, Dangote Cement Plc faced a loss of 87 billion Naira for operations on the continent; in addition to a still weak turnover and expenses that remained constant, the group dealt with a financial loss of 98 billion Naira.
In a context where the African continental free trade area is gradually being established, Dangote Cement is considered a hero of economic pan-Africanism. But the company remains lagging in reaching its expected profitability.
On the Lagos stock market, where the group is listed, the value of its shares has fallen by nearly 13% since the year started. And this situation might continue in the short term. The first half-year was a little difficult. Net profit for the period reached a weak 119.2 billion Naira; though higher than the 113.4 billion Naira in H1 2018, due to a lower tax burden.