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”.
