Dangote cement posts N390.3b profit in 2018
Dangote Cement has posted a Profit After Tax (PAT) of N390.32 billion in its 2018 operations, against N204.25 billion achieved in the corresponding period in 2017.
Besides, the firm has maintained its dominance of the Nigerian market, accounting for 65 per cent of the total volume sold in the domestic cement sector in 2018.
The company also exported 800,000 tonnes of cement to West African countries within the same period.
The company’s profit before tax stood at N300 billion, and had enjoyed a whopping N56.98billion exemption from tax, which brought income tax credit for the period to about N89.52 billion, in contrast to N389.5 billion achieved in 2017.
The cement manufacturing giant attributed the improved performance to strong increase in the Nigeria market, despite heavy rains and uncertainties about the election, coupled with the volume of exports made during the period, which strengthened Nigeria’s position as a cement exporting country.
Specifically, audited full year result showed revenue of N263.26 billion, an increase of 9.6 per cent over N258.44 billion posted in the corresponding period in 2017.
Profit after tax surged stood at N390.32 billion in contrast to N204.25 billion, while earnings per share rose from N11.65 to N22.83. The company directors are proposing a dividend of N16 per share
According to the details of Dangote Cement’s audited results for the year ended December 31, 2018, it sold a total of 23.54 metric tonnes (MT) of cement across Africa, indicating an increase of 7.4 per cent over the 21.92MT sold in 2017.
Nigerian operations accounted for 14.18MT representing an increase of 11.4 per cent over the volume of 12.72MT year-on-year. The increase in the Nigerian volume is attributable to higher building activities as the economy recovered from recession
The sales volume in Nigeria is quite significant given the turbulent market situation as the election period approached and people usually hedge in the construction industry during such periods.
The Group Chief Executive Officer, Dangote Cement, Joe Makoju, in his remarks said: “This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election.”
“Although Pan-African volumes were unchanged in 2018, I am confident that we will see an increase in 2019, driven by higher volumes in Tanzania, Ethiopia, Congo, and Sierra Leone.
Now that we have gas turbines operating in Tanzania we will also see increased profitability in the Pan-Africa region and this will help to improve overall Group margins.”
Across Africa, the cement Group posted combined revenue of N901.21 billion, with Nigerian operations doing N618.30 billion, representing an increase of 11.9 per cent over N552.36 billion in 2017.
The Nigerian economy was earlier projected to have grown by 1.9 per cent in 2017, meaning that Dangote Cement outperformed the domestic economy.