Latest price cut will increase profits of Dangote Cement

The latest price cut of cement prices announced by Dangote Cement was a calculated risk in a bid to increase its market share, sales volume and profitability, reports World Stage. Dangote Cement has slashed price of 3X cement brand to 18 percent to NGN 6,000 per ton as it will earn strong returns and increased sales overseas.

Many market analysts feel that the price cut will increase sales volumes and profitability of Dangote Cement. Since Dangote Cement is market leader in Africa, other cement companies will be forced to reduce their prices as well. Dangote Cement market capitalization stood at NGN 2.78 trillion on September 9, 2015.

Dangote Cement declared a profit of NGN 121.8 billion for the half year ended June 30, 2015, an increase of 21.7 per cent as compared to NGN 95.4 billion recorded the half year which ended at June 30, 2014. The cement company recorded a 15.94 per cent rise in revenue, around NGN 242.215 billion revenue as against NGN 208.909 billion in the first half of 2014.