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.”