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Dangote Cement Still the King, Generates Over N1 Trillion Revenue in Three Quarters

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Dangote Cement - Investors King

Dangote Cement, Nigeria and Africa’s leading cement manufacturer, reported a whopping N1.022 trillion in revenue in the first nine months of 2021, slightly below the N1.034 trillion realised in the whole of 2020.

The manufacturer disclosed this in its unaudited financial statement released on the Nigerian Exchange Limited.

Production cost of sales stood at N403.388 billion in 2021, up from N317.540 billion filed in the corresponding period of 2020 when the company generated N761.444 billion in revenue.

As expected gross profit inched higher from N443.904 billion in 2020 to N618.798 billion in 2021, while profit from operating activities jumped by 52.9 percent to N440.324 billion. Largely due to the surge in revenue and other income when compared to the corresponding period of 2020.

Drop in finance income and surge in finance costs dragged on profit before tax in the period under review. Finance income stood at N13.851 billion in 2021, below N18.330 billion recorded in 2020. Finance costs, however, rose from N34.298 billion to N48.688 billion.

Therefore, profit before tax rose to N405.487 billion in the first nine months of 2021, representing a 49.1 percent increase from N271.960 billion in 2020.

The company more than double its income tax in the period under review, paying N127.237 billion. An increase of 101.1 percent from N63.275 billion paid in the same period of 2020, that was a COVID-19 period when Dangote Cement and other organisations received a tax credit to ease the negative effect of the pandemic on their operations.

Profit after tax, hence, adjusted to N278.250 billion. Still, Dangote Cement recorded a 33.3 percent increase in profit after tax from N208.685 billion filed in 2020.

Earnings per share appreciated from N12.25 in 2020 to N16.23 in 2021.

Commenting on the company’s performance, Michel Purchecos, the Group Chief Executive Officer, Dangote Cement Plc, said Dangote Cement is pleased with its performance for the first nine months of the year.

He said, “Group volumes for the nine months were up 15.4 per cent compared to the first nine months of 2020. Given the strong rebound in Q3 2020 following the impact of COVID-19 in the first half of the year, volumes in Q3 2021 were slightly lower than Q3 2020, as anticipated though worsened by heavier rains.

“However, the overall growth trend continues, supported by our ability to meet the strong market demand across all our countries of operation. The economic performance and efficiency initiatives across the group, enabled the offsetting of inflationary pressures on some of our cost lines.”

He added, “Our Nigerian business recorded volume growth of 18.7 per cent in the 9M 2021 at 14.1 metric tonnes and despite operating in a complex, challenging, and fast-moving environment, Dangote Cement is consistently delivering superior profitability and returns to the shareholders”.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Breweries Announces 142.8% Jump in Profit in H1 2022

Nigerian Breweries Plc on Friday reported a whopping 142.8% jump in profit after tax realised in the first half (H1) of 2022.

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Nigerian Breweries - Investors King

Nigerian Breweries Plc on Friday reported a whopping 142.8% jump in profit after tax realised in the first half (H1) of 2022.

In the company’s unaudited financial statement obtained by Investors King, revenue grew by 31% from N209.031 billion recorded in the first half of 2021 to N274.085 billion in the period under review.

Cost of sales stood at N155.349 billion, an increase of 18.3% from N131.340 billion filed in the corresponding period of 2021.

Gross profit rose by 52.4% from N77.917 billion in H1 2021 to N118.736 billion in H1 2022 while marketing, distribution and administration expenses surged by 44.8 percent to N84.896 billion from N58.628 billion.

Results from operating activities expanded by 79.9% to N35.840 billion, up from N19.917 billion achieved in H1 2021.

Nigerian Breweries grew profit before tax to N25.697 billion in the period under review from N11.940 billion filed in H1 2021.

The company paid N6.954 billion in income tax to post N18.743 billion profit after tax. This represents an increase of N142.8% growth from N7.858 billion recorded in H1 2021.

In a press release signed by Uaboi G. Agbebaku, Esq., Company Secretary, Nigerian Breweries said profitability was driven by the company’s pricing strategy and better mix.

However, the increase in the cost of sales was attributed to the recent surge in commodity prices due to internal and external factors.

“The increase in operating profit and profit after tax was driven mainly by top line growth resulting from our pricing strategy and better mix. Increase in cost of sales was due to rise in commodity prices. Marketing, distribution and administration expenses were driven by the increase in commercial activities, rising diesel prices and higher wages arising from collective labour agreements,” the company stated.

“Although interest expenses were lower, the net finance cost was higher due to foreign exchange losses arising from a higher cost of meeting foreign obligations to overseas partners.

“Our business continues to build momentum and deliver consistent profitable growth even in the context of a very challenging operating environment. Our best-in-class portfolio of brands provides a unique platform that positions us well to lead and grow the beer and malt category and drive superior long-term value creation.”

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Lafarge Africa Grows Profit by 3.5% in Q2, 2022

Lafarge Africa Plc, one of Africa’s largest cement manufacturers, managed to sustain profitability in the second quarter (Q2) of the year as over 70% jump in selling and distribution costs dragged on the company’s profit after tax.

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Lafarge Africa Plc, one of Africa’s largest cement manufacturers, managed to sustain profitability in the second quarter (Q2) of the year as an over 70% jump in selling and distribution costs dragged on the company’s profit after tax.

In the firm’s unaudited financial statement obtained by Investors King, revenue rose by 30.5% from N73.546 billion recorded in the second quarter of 2021 to N95.981 billion in the period under review.

Cost of sales (production) jumped 30.3% to N42.055 billion, up from N32.267 billion reported in the same period of 2021.

The increase weighs on gross profit as expected. Gross profit stood at N53.926 billion, against N41.279 billion achieved in the corresponding period of 2021.

Similarly, selling and distribution costs jumped a whopping 73.6% from N13.034 billion in Q2 2021 to N22.631 billion in Q2 2022. While other income dipped 38.36% to N89.631 million from N145.415 million in Q2 2022.

Therefore, the surge in cost of production, selling and distribution costs plunged operating profit to N26.514 billion. Still, a 12.8% increase when compared to the N23.515 billion realised in Q2 2021.

Finance income declined from N191.142 million to N136.945 million. Again, finance costs also jumped by over 50% to N1.239 billion in the period under review.

All these increases in expenses and declines in income dragged on profit before tax to N25.411 billion, a 3.5% increase from N23.976 billion in Q2 2021.

Commenting on the company’s performance, Khaled El Dokani, CEO of Lafarge Africa, said: “Our Q2 2022 performance shows significant improvement over Q2 2021, with net sales of +30.5%, recurring EBIT of +12.8% and net income of +3.5%.

“Our H1 2022 results are even more impressive, with 28.7% and 32.1% growth in net sales and net income,
respectively.

“This further confirms the consistent resilience and robustness of our business. We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and agroecology footprint are in accordance with our net zero pledge journey.”

On the outlook for the second half of the year, Lafarge Africa’s boss predicted a positive demand momentum expected in H2 2022.

He said, “We will continue to maximize volume opportunities across our markets and actively manage our costs and remain focused in our drive towards sustainability.”

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Ethiopian Airlines Orders Africa’s First A350-1000

Ethiopian Airlines Group, the flag carrier of Ethiopia, Africa’s largest airline group, has upsized four of its A350-900 on order to the largest variant of the A350 Family, the A350-1000, becoming Africa’s first customer for the aircraft.

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Ethiopian Airlines Group, the flag carrier of Ethiopia, Africa’s largest airline group, has upsized four of its A350-900 on order to the largest variant of the A350 Family, the A350-1000, becoming Africa’s first customer for the aircraft.

Ethiopian Airlines has already ordered 22 A350-900s, of which 16 aircraft have been delivered. With the A350-1000 upsizing, Ethiopian Airlines’ backlog consists of four A350-1000s and two A350-900s.

Ethiopian Airlines Group CEO Mr. Mesfin Tasew said, “We are delighted over the upsizing of the A350-900 on order to the largest variant, A350-1000, that helps us stay ahead of the curve in technology. We are the technology leaders in the continent introducing the latest technology and fuel-efficient fleet into Africa. The A350-1000 is the best fit for our dense routes, and we believe that the upsizing will be instrumental in satisfying the increasing demand of customers in our vast global network across five continents. We will continue on keeping ourselves abreast of aviation technology advancements to enhance our service and fulfil customers’ demand.”

“We are proud of our strong partnership with Ethiopian Airlines – the first airline in Africa to order and operate the A350-900. In another first, Ethiopian Airlines is once again leading the way in Africa’s aviation sector by introducing the A350-1000, the largest version of the world’s most efficient and technologically advanced passenger aircraft.” said Mikail Houari, President, Airbus Africa and Middle East. “The A350-900 has delivered extraordinary capability, fuel efficiency, and operational reliability of 99.5 percent together with unbeatable operational flexibility and efficiency, from short to ultra-long-range operations.”

The A350-1000 will increase the East African carrier’s capacity and it will be an addition to its modern wide-body fleet. The airline will benefit from a flexible, high-value Family leveraging Airbus’ unprecedented level of commonality and same type rating.

The Airbus A350’s clean-sheet design features state-of-the-art aerodynamics, a carbon-fibre fuselage and wings, plus the most fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies translate into unrivalled levels of operational efficiency and sustainability for Ethiopian Airlines, with a 25% reduction in fuel-burn and CO2 emissions compared to previous generation twin-aisle aircraft.

By the end of June 2022, the A350 Family had received 940 orders from 52 customers, making it the reference large widebody family for the next decades.

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