Finance

Dangote Cement Thrives in Q1, Posts N89.7 Billion Profit

Dangote Cement Plc, Africa’s leading cement manufacturer, grew revenue to N332.651 billion in the first quarter (Q1) of 2021 from N249.182 billion in the first quarter of 2020.

The manufacturer disclosed in its unaudited financial statements obtained by Investors King.

Gross profit expanded from N144.857 billion in Q1 2020 to N204.655 billion in Q1 2021, while profit from operating activities stood at N151.744 billion, up from N91.779 billion in Q1 2021.

Finance income moderated from N5.290 billion filed in the corresponding quarter to N5.290 in the quarter under review.

Finance costs, however, rose to N25.297 billion in Q1 2021 from N9.012 billion recorded in Q1 2020.

Profit before tax grew from N88.057 billion in the same quarter of 2020 to N130.101 billion in Q1 2021.

Dangote Cement paid N40.391 billion in income tax for the quarter, around 38 percent increase from N27.465 billion paid in Q1 2021.

Profit after tax rose from N60.592 billion in the first quarter of 2020 to N89.710 billion in the first quarter of 2021.

Earnings per share also grew to N5.29 from N3.60 in Q1 2020.

Chief Executive Officer, Dangote Cement, Michel Puchercos, commended the resiliency of the management and staff of the company in delivering good results despite the tough operating environment and COVID-19 disruptions.

“We took the strategic decision to pause our clinker exports to ensure we meet the rapid volume growth in the Nigerian domestic market. We are improving the output of our existing and new assets and aim to recommence clinker exports in the second quarter.

“Our Pan-Africa operations have reached new heights, with an EBITDA margin of 25.5 percent and volume growth of 12.8 percent reported during the quarter.

“One of our priorities in 2021 is to strengthen our alternative fuel initiative. It focuses on leveraging the circular economy business model, optimising costs and reducing exposure of our cost base to foreign currency fluctuations.
As ever, we are committed to keeping our staff and communities safe by being fully compliant with health and safety measures in all our territories of operation.”

Dangote Cement Plc is sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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