Dangote Cement’s profit rises 38%, revenue hits N1.03trn

Dangote Cement simulated ₦618.69 ▲0.74% Plc, Africa’s largest cement producer, saw its profit after tax for the 2020 financial year rise by 37.7 percent on the back of “strong demand coupled with cost-saving measures”.

The group’s after-tax profit increased to N278.1 billion last year from N200.52 billion in 2019, its audited results released on Tuesday showed.

Its profit before tax grew by 49.04 percent to N373.31 billion in 2020 as revenue rose by 16 percent to N1.03 trillion.

Dangote Cement, Nigeria’s biggest listed company, saw its sales volumes increase by 8.6 per cent to 25.7 million tonnes amid the COVID-19 pandemic.

Its earnings per share was up 36.9 percent to N16.14, with the proposed dividend maintained at N16.00 per share.

The Chief Executive Officer, Michel Puchercos, said in a statement that despite the impact of the pandemic, 2020 was a record year for Dangote Cement across board.

He said, “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 this was 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.”

Puchercos said profitability was further bolstered by the group’s disciplined cost control measures in what it believed to have been a highly inflationary and volatile year.

He said, “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 8.6 percent and Group EBITDA was up 20.9 percent, at a 46.2 percent margin.

“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 currency fluctuations.”

The CEO said the group remained committed to keeping its staff and communities safe by being fully compliant with health and safety measures in all its territories of operation.

“We are focused on adapting to the rapidly evolving markets in which we operate,” he added.