Dangote Cement Posts N201bn Profit After Tax
Dangote Cement Plc has posted a profit after tax of N200.521bn for the financial year ended December 31, 2019 as against a profit of N390.325bn posted in 2018, representing a drop of 48.63 per cent.
Profit before tax stood at N250.479bn from N300.806bn posted in 2018, accounting for a drop of 16.73 per cent. Revenue was N891.674bn as against N901.213bn in 2018.
The board proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming Annual General Meeting.
Speaking on the result, the Group Chief Executive Officer, Dangote Cement, Joe Makoju, said, “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets. The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.
“Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements.
“As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production. Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement, serving neighbouring countries. I wish Mr Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. It is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
Dangote cement in a report obtained from Reuters on Wednesday said that its export volumes in 2019 had been affected by border closure in its home country of Nigeria, as the government tries to combat smuggling.
Nigeria closed its land border in August to curb smuggling of rice and arms, which it says threatens efforts to boost local production and security and also to generate state revenues through import duties, the customs service has said.
