Dangote Cement posts N204.2b profit
Recommends N10.50 kobo dividend
For the financial year ended December 1, 2017, Dangote Cement Plc has posted Profit After Tax (PAT) of N204.2 billion, against N142.9 billion achieved in the corresponding period in 2016.
Precisely, the firm’s audited result presented to the Nigerian Stock Exchange, showed that gross revenue also increased from N615.1 billion to N805.6 billion during the year under review.
The percentage increase in profit is 43 per cent while gross revenue grew by 31 per cent. The company’s Profit Before Tax rose by 289.6 billion, representing N60.1 percent rise when compared to N180.9 billion recorded in 2016.
Gross profit increased by 56 per cent from N291.3 billion to N454.3 billion in 2017.
Based on the improved performance, the directors of the company are recommending a dividend of N10.50 kobo per 50 kobo ordinary share due to every shareholder of the firm for the 2017 financial year.
The Africa’s largest cement producer had also posted a 12.6 per cent increase in sales volume across Africa for the six months ended 30th June 2017.
In the financials released on the floor of the Nigerian Stock Exchange indicated that the increase in sales volume showed a growing capture of Pan-African market as Dangote Cement continues to gain grounds.
Revenues from operations in Nigeria increased by 34.5 per cent to ₦291.4 billion while Pan-African revenue increased by 63.7 per cent to ₦124.4B from ₦76.0 billion mainly as a result of increased volumes and foreign exchange gains when converting the sales from country local currency into Naira.
Analysis of the half-year result revealed that sales volumes of African operations increased by 12.6 per cent to 4.7mn metric tons with Sierra Leone making a 53 kt maiden contribution.
Record of sales from its operations scattered around the African continent revealed that a total of 1.1mn ‘metric tons of cement was sold in Ethiopia, almost 0.7mn metric tons sold in Senegal, 0.6mn metric tons sold in Cameroon, and 0.5mn tons in Ghana.
Also, 0.4mn metric tons of cement were sold in Tanzania and 0.3mn tons in Zambia. Sales volumes from Nigerian operations fell from 8.8Mt to 6.9Mt, occasioned by the onset of rains, which stalled many construction projects.
The Company reports that it estimated that Nigeria’s total market for cement was 10.2mn tonnes (Mt), 23.2 per cent lower than the estimated 13.3Mt sold in Nigeria in the first half of 2016. Of total market sales in the first half of 2017, just 0.1Mt was imported.
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