Dangote Cement PLC recorded, in the six months to June, a profit surge slightly exceeding half of the profit it earned at the first half of last year, the earnings report of the manufacturing heavyweight showed on Friday.
Nigeria’s largest company by market value dominates the West African cement trade and accounts for three out of every five bags of cement produced in its home market Nigeria, where a major real estate boom coming after relaxation of Covid-19 lockdowns is rapidly driving manufacturers to look the way of enlarging output.
The exploding demand spurred a jump of as much as 44.8 per cent in the company’s revenue, which touched N690.5 billion, according to the document seen by PREMIUM TIMES.
“We are expanding capacity from about 50,000 tons a day at the beginning of the year to 70,000 tons a day at the end of the year,” Edwin Devakumar, group executive director at Dangote Industries Limited said in April.
Dangote Cement Plc had cement production and bagging capacity of 48.6 million tonnes as of June end.
Profit before tax was up 72.7 per cent at N281.3 billion but that did not impact bottom-line at the same force as a 144 per cent surge in the spending on income tax capped earnings. That left profit after tax at N191.6 billion.
“Nigeria has total cement production capacity of 47.8 million tonnes and annual demand for around 20.7 million tonnes, but cement prices are some 240% above the global average they said, a serious dampener on Africa’s largest economy,” Reuters said in an April report, citing Nigerian legislators.
The lawmakers want manufacturing licences for new cement-makers whom they expect will break the oligopoly of Nigeria’s three dominant manufacturers of the product – Dangote Cement, BUA Cement and Lafarge – and make prices competitive.
Dangote Cement closed in Lagos on Friday at N248 per unit, gaining 0.04 per cent.
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