Dangote Cement full year profit jumps to N276 billion on higher sales

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.

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.

The Nigerian government in the third quarter of last year excluded Dangote Cement from its blockade on exports to other countries through land borders especially to West African neighbours Niger and Togo, thereby ramping up sales, Chief Executive Officer Michel Puchercos said on an investor call, according to Bloomberg.

Profit before tax swelled by 49 per cent, rising from N250.479 billion to N373.310 billion.

Profit for the year advanced from N200.521 billion to N276.068 billion, translating to a 37.7 per cent jump. That lifted earnings per share from N11.79 to N16.14.

Earnings were limited by a N188 million provision for impaired asset as well as a surge in income tax expense from N49.958 billion to N97.242 billion, implying a 94.6 per cent growth.

Shareholders fund dipped 0.8 per cent from N897.937 billion to N890.970 billion, following Dangote Cement’s buyback of 40.2 million units of its shares in December at the cost of N9.8 billion.

The company’s board on Friday proposed a N16 per share dividend totalling N272.648 billion for shareholders for 2020, the same amount it has paid shareholders every year in the past three years.

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“I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, Group volumes for the year were up per cent and Group EBITDA was up 20.9 per cent,” Mr Puchercos said.

“Looking ahead, we have strengthened our Alternative Fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currencies fluctuations.”

Shares in Dangote Cement closed in Lagos on Tuesday at N220 per unit, trading up by 3.09 per cent.