Dangote Cement Plc has posted 29.09 percent increase in profit after tax for the first quarter ended March 31, 2018.
The company’s financials released on the floor of the Nigerian Stock Exchange (NSE) indicated that the group posted profit after tax of N72.123 billion in 2018 as against N55.866 billion recorded a year earlier, representing an increase of 29.09 per cent.
Profit before tax grew by 40.21 per cent to N108.403 billion during the period under review, from N77.317 billion reported in 2017.
Revenue equally rose by 14.02 per cent from N208.166 billion in 2017 to N242.116 billion in 2018.
Dangote Cement posted a 42.97 per cent increase in profit after tax for the financial year ended December 2017.
The group posted profit after tax of N204.248 billion in 2017 as against N142.858 billion recorded a year earlier, representing an increase of 42.97 per cent.
Profit before tax grew by 60.06 per cent to N289.590 billion during the period under review, from N180.929 billion reported in 2016.
Revenue equally rose by 30.97 per cent from N615.103 billion in 2016 to N805.582 billion in 2017.
The cement company posted a 12.6 per cent increase in sales volume across Africa in its unaudited results for the six months ended 30th June 2017.
The financials indicated that the increase in sales volume showed a growing capture of Pan-African market as the company continues to gain grounds.
Revenues from operations in Nigeria increased by 34.5 per cent to N291.4 billion while Pan-Africa revenue increased by 63.7 percent to N124.4B from N76.0B mainly as a result of increased volumes and foreign exchange gains when converting the sales from country local currency into Naira.
Analysis of the half year result revealed that sales volumes of African operations increased by 12.6 per cent to 4.7 million metric tons with Sierra Leone making a 53 kt maiden contribution.
Record of sales from its operations scattered around the African continent revealed that a total of 1.1million ‘metric tons of cement was sold in Ethiopia, almost 0.7 million metric tons sold in Senegal, 0.6 million metric tons sold in Cameroon, and 0.5 million tons in Ghana.
Also, 0.4 million metric tons of cement was sold in Tanzania and 0.3 million tons in Zambia. Sales volumes from Nigerian operations fell from 8.8Mt to 6.9Mt, occasioned by the onset of rains which stalled many construction projects.
Commenting on the half year results, Dangote Cement’s Chief Executive Officer, Onne van der Weijde expressed satisfaction that the company’s revenues have continued to grow despite low sales from the Nigerian operations noting that the revenues grew on the strength of sales from other African operations
He said: “Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria.
“We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs.
”Our Pan-African operations are growing well and increasing market share. We saw our the first sales from Sierra Leone in the first quarter and our new plant in the Republic of Congo will be in production at the end of July, further increasing our footprint across Africa and strengthening our position as its leading manufacturer of cement.”
Source: New Telegraph