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Dangote Cement Posts N82.542 Billion Profit in Q3, 2020



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Dangote Cement Declares N82.542 Billion Profit After Tax in Q3, 2020

Dangote Cement Plc, a leading cement manufacturer in Africa, declared a profit after tax of N82.542 billion for the third quarter ended September 30, 2020.

In the unaudited financial statements filed with the Nigerian Stock Exchange, the company recorded N284.592 billion in revenue, higher than the N212.061 billion posted in the third quarter of 2019.

Dangote Cement declared N169.472 billion gross profit after spending N115.120 billion as the cost of sales.

The cement manufacturer almost doubled the N60.986 billion profit from operating activities it achieved in the corresponding period of 2019. It posted a N114.449 billion profit from operating activities in the third quarter of 2020.

Profit before tax rose nearly 200 percent from N42.192 billion in the third quarter of 2019 to N109.109 billion in the third quarter of 2020.

Similarly, Dangote Cement grew profit after tax from N35.110 billion in the same period of 2019 to N82.542 billion in the third quarter of 2020.

Michel Puchercos, the Group Chief Executive Officer, Dangote Cement, said the company sold 19.21 million tonnes for the nine-month ended September 30, 2020, representing 6.6 percent more than the 18.02 million tonnes sold in 2019.

Speaking on the company’s nine months performance, Mr Puchercos, said: “The Cement Group’s revenue went up by 12 per cent to N761.4 billion compared to N679.8 billion in 2019 with domestic operations accounting for N535.51 billion which compared to N467.88 billion up by 14.5 per cent. Pan-Africa operations contributed N232.61 indicating a 9.1 percent increase over N213.20 billion in 2019.

“Despite a challenging environment, Group volumes for the nine months were up by 6.6 per cent and group EBITDA was up 17.1 per cent, at a 46.6 per cent margin.

“This quarter has really shown the ability of Dangote Cement to meet the strong recovery of the cement market in Nigeria and Pan-Africa after a challenging Q2. In Nigeria, we have witnessed a strong appetite for real estate investment and the recovery of infrastructure spending, including more concrete roads.

“Sales volumes in Nigeria were up 40 per cent in the quarter and Pan-Africa reached a record high EBITDA margin of 24 per cent in the quarter.

“We continue to focus on our export strategy and are on track to ensure West and Central Africa become cement and clinker independent, with Nigeria as the main supply hub. Clinker exports have steadily been ramping up in Q3 after our maiden shipment in June 2020, whilst land exports have also resumed,” he said.

“In the period under consideration, Dangote Cement has exported 7 clinker vessels from Nigeria via the Apapa export terminal, while plans are on track to commission the Port Harcourt export terminal before the end of the year,” he added.

Mr Puchercos said: “Dangote Cement’s strategy to offer high quality products at competitive prices is meeting customers’ expectations in Nigeria and across the continent, where we continue to deploy excellent marketing initiatives and operational excellence.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Stock Market

Investors Dump N15 Billion on United Capital Series 3 Commercial Paper



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United Capital Plc has raised N15 billion through Series 3 Commercial Paper (CP) issued under a N20 billion programme registered with the FMDQ Securities Exchange.

The company announced this through a statement forwarded to the Nigerian Stock Exchange.

According to the statement, the Series 3 270-day issuance at a yield of 1.26 percent had 112 percent subscriptions from a pool of institutional investors, especially Asset Managers.

The statement reads in part, “this issuance sets another ground-breaking record in the Nigerian Capital Markets, being the lowest yield on record for a 270-day CP issuance by a nonbank issuer. FSDH Capital Limited, United Capital Plc, and UCML Capital Limited acted as Arrangers to the transaction.”

Speaking on the success of the commercial paper, Mr. Peter Ashade, the Chief Executive Officer, United Capital Plc, said “The commercial paper issuance is in line with our bid to diversify our funding sources, strengthen our capital base and intensify our strategic initiatives aimed at providing innovative financing solutions to our clients”.

“This issuance sets another ground-breaking record in the Nigerian Capital Markets, being the lowest yield on record for a 270-day CP issuance by a nonbank issuer. FSDH Capital Limited, United Capital Plc, and UCML Capital Limited acted as Arrangers to the transaction.”

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Stock Market

Guaranty Trust Bank, Flour Mills Led Losers as Stock Market Sheds 0.25%



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Guaranty Trust Bank led losers on Thursday despite investors exchanging 289.394 million shares valued at N7.348 billion in 4,877 deals.

The market capitalisation of listed equities depreciated to N18.277 trillion on Thursday while the NSE All-Share Index declined by 0.25 percent to 34,968.94 index points.

United Bank for Africa led the most traded stocks with 34,452,379 shares estimated at N283,444,025.15.

This was followed by Zenith Bank’s 31,201,182 shares valued at N743,575,194.70. MTN Nigeria, Access Bank and Mbenefit did 27,412,485, 22,957,947 and 22,490,334 worth N4,379,326,719.70, N196,038,901.15 and N5,063,096.82, respectively.

Guaranty Trust Bank led losers with a 50 kobo decline or 1.46 percent to close at N33.6 per share. See the details below.

Top Losers

Symbols Last Close Current Change %Change
GUARANTY N34.1 N33.6 -0.5 -1.47%
FLOURMILL N27 N26.5 -0.5 -1.85%
CADBURY N9.2 N8.7 -0.5 -5.43%
UBA N8.65 N8.2 -0.45 -5.20%
ZENITHBANK N24 N23.55 -0.45 -1.88%

Top Gainers

Symbols Last Close Current Change %Change
MTNN N155 N156.2 1.2 0.77%
ARDOVA N13 N14 1 7.69%
REDSTAREX N3.25 N3.38 0.13 4.00%
CUTIX N1.8 N1.9 0.1 5.56%
UPL N1.41 N1.47 0.06 4.26%

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Stock Market

Stock Market Extends Bullish Run in December, Opens the Month With 0.30% Gain



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Nigerian stock investors continued to dump more funds on Nigerian equities in December as the Nigerian Stock Exchange opened the month on a positive strong note.

The NSE All-Share Index gained 0.30 percent to settle at 35,147.62 index points while the market capitalisation rose by N56 billion from N18.309 trillion recorded on Monday to settle at N18.365 trillion on Tuesday.

Investors traded 308.181 million shares valued at N3.403 billion in 35,147.62 index points during the trading hours of Tuesday.

Access Bank led the most traded stock 43,368,357 shares worth N376,476,921.75. While First Bank followed with 31,934,748 shares valued at N229,789,381.55. See the details below.

Top Trades

Symbols Volume Value
ACCESS 43,368,357 N376,476,921.75
FBNH 31,934,748 N229,789,381.55
MBENEFIT 24,434,500 N5,155,841.00
UBA 24,092,641 N200,213,240.15
GUARANTY 24,056,718 N859,153,111.15

Top Gainers

Symbols Last Close Current Change %Change
GUARANTY N33.2 N35 1.8 5.42%
SEPLAT N400.7 N402.3 1.6 0.40%
ZENITHBANK N24 N24.4 0.4 1.67%
CAVERTON N1.72 N1.89 0.17 9.88%
CUTIX N1.53 N1.68 0.15 9.80%

Top Losers

Symbols Last Close Current Change %Change
GUINNESS N18.9 N18.35 -0.55 -2.91%
FLOURMILL N27.85 N27.6 -0.25 -0.90%
MTNN N155.2 N155 -0.2 -0.13%
FCMB N3.33 N3.21 -0.12 -3.60%
UBA N8.3 N8.2 -0.1 -1.20%

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