“…Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes.”
Africa’s largest cement producer, Dangote Cement Plc, has remained a major contributor to the economy with a tax charge of N97 billion for the financial year ended December 31, 2020, even as it proposed a dividend of N16 per share.
According to the cement group’s audited results released on the floor of the Nigerian Stock Exchange (NSE), the tax charge represents an increase of 95 per cent over the sum of N50 billion recorded in 2019.
Dangote Cement’s Nigerian operations during the period sold 15.9Mt for the full year 2020, compared to 14.1Mt in 2019. This includes both cement and clinker sales, which implies a 12.9 per cent growth for the full year 2020. Looking at the domestic sales alone, Nigerian operations sold 15.6Mt, up by 14.3 per cent year on year and resulting in an increase in market share.
Revenues for the Nigerian operations increased by 18.0 per cent to ₦720.0 billion, owing to demand in the domestic market. This volume growth was enhanced by a successful innovative national consumer promotion “Bag of Goodies – Season 2” and lower rains in the third quarter compared to the previous year.
The Nigerian business recorded a strong Earnings before interest, taxes, depreciation and amortization (EBITDA) of ₦421.4 indicating a margin of 59 per cent.
Dangote Cement posted a record high Pan-African EBITDA of ₦71.3 billion, which went up by 49.0 per cent. Within the period under review, the cement group commissioned its gas power plant in Tanzania. Group earnings per share was up by 36.9 per cent to ₦16.14.
Dangote Cement recorded strong performance not only at the top line but also at the bottom line, owing to cost-saving measures. Despite inflationary pressures and foreign exchange volatility, disciplined cost control measures enabled the company to maintain a relatively flat cash cost per tonne. The cost control measures include improved plant efficiency, better fuel mix and general overhead optimization
Chief Executive Officer, Dangote Cement Plc, Michel Puchercos, in his comments on the results, said: “2020 was a good year for Dangote Cement across board. Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme. We increased our capacity by 3Mt in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All these were achieved whilst we focused on protecting our people, customers and communities from the impact of the pandemic.
“Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year. These measures resulted in a 37.7% increase in profit after tax to ₦276.1 billion.
Source: Tribune
