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 31st December 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 improved by means of 18.0% to N720.Zero billion, thanks to call for in the domestic marketplace. This volume boom was greater by using a a hit innovative country wide customer advertising "Bag of Goodies - Season 2" and decrease rains in the third area compared to the previous yr.
The Nigerian enterprise recorded robust Earnings earlier than interest, taxes, depreciation and amortization (EBITDA) of N421.Four indicating a margin of 59%.
Dangote Cement posted a document excessive Pan-African EBITDA of N71.3 billion, which went up through 49.0%. Within the duration beneath overview, the cement group commissioned its gasoline electricity plant in Tanzania. Group profits per proportion had been up through 36.Nine% to N16.14.
Dangote Cement recorded robust performance no longer best at the pinnacle line however also at the bottom line, due to value-saving measures. Despite inflationary pressures and foreign exchange volatility, disciplined fee manage measures enabled the business enterprise to maintain a especially flat coins cost in line with tonne. The value manipulate measures consist of stepped forward plant performance, better gasoline blend and popular overhead optimization.
Chief Executive Officer, Dangote Cement Plc, Michel Puchercos, in his feedback on the consequences, stated:
"2020 was an excellent year for Dangote Cement across the board. Several firsts made 2020 a effective yr such as our maiden clinker shipment, maiden bond issuance and a hit buyback programme. We elevated our capacity via 3Mt in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All those have been executed even as we targeted on shielding our human beings, customers and groups from the impact of the pandemic.
"Dangote Cement recorded strong pinnacle-line growth supported by way of sturdy cement demand. Profitability turned into further strengthened through our disciplined fee manipulate measures in what we believed to were a pretty inflationary and risky yr. These measures resulted in a 37.7% increase in profit after tax to N276.1 billion.
"I am thrilled to report that Dangote Cement experienced its most powerful 12 months in terms of EBITDA and most powerful year in phrases of volumes. Despite a challenging environment, Group volumes for the yr were up 8.6% and Group EBITDA was up 20.9%.
"Looking beforehand, we have reinforced our Alternative Fuel initiative which makes a speciality of leveraging the round economy commercial enterprise model and lowering exposure of our fee base to overseas currencies fluctuations. We hold to embed Dangote Cement's 7 sustainability pillars into every aspect of our operation and culture.
"We remain devoted to maintaining secure our group of workers and groups by using being fully compliant with fitness and protection measures in all our territories of operation. We are focused on adapting to the hastily evolving markets wherein we function."
Dangote Cement Plc is sub-Saharan Africa's biggest cement manufacturer with an mounted potential of 45.6Mta across 10 African nations and operates a totally incorporated "quarry-to-patron" commercial enterprise with sports covering manufacturing, income and distribution of cement.
Dangote Cement has an extended-term credit score of AA+ via GCR and Aa2.Ng with the aid of Moody's due to its marketplace-main position, massive operational scale and strong economic profile evidenced by the employer's robust operating and net earnings margins relative to nearby and worldwide friends, ok operating capital, exceptional cash go with the flow and coffee leverage.
Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading logo throughout Africa in groups such as cement, sugar, salt, drinks, and real property, with new multi-billion dollar initiatives underway in the oil and gasoline, petrochemical, fertiliser and agricultural sectors.
No comments:
Post a Comment