Dangote Cement records 37.7% jump in profit, declares N272bn dividend

Dangote Cement, Africa’s biggest cement producer, says it recorded a 37.7 percent jump in profit after tax to N276 billion for the full-year ended December 31, 2020.

The company, in its audited result for the period, said its Nigerian operations sold 15.9Mt of cement and clinkers, compared to 14.1 in 2019, this represents a 12.9 per cent growth in product sales.

Also, revenues for the Nigerian operations increased by 18 per cent to N720 billion, riding on the back of a strong demand in domestic market, successful innovative national consumer promotion “Bag of Goodies – Season 2” and lower rains in the third quarter compared to the previous year.

The company also recorded a strong performance not only at the top line but also at the bottom line, owing to cost saving measures, and has proposed a total of N272 billion to shareholders of the company as dividend for the period.

Despite inflationary pressures and foreign exchange volatility, disciplined cost control measures enabled the company to maintain a relatively flat cash cost per tonnes. The cost control measures include improved plant efficiency, better fuel mix and general overhead optimisation.

Michel Puchercos, chief executive officer of Dangote Cement, said 2020 was a “good year” for the company across board.

“Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme. We increased our capacity by 3Mt in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All these were achieved whilst we focused on protecting our people, customers and communities from the impact of the pandemic.

“Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year. These measures resulted in a 37.7% increase in profit after tax to ₦276.1 billion.

“I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, Group volumes for the year were up 8.6% and Group EBITDA was up 20.9%.

“Looking ahead, we have strengthened our Alternative Fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currencies fluctuations. We continue to embed Dangote Cement’s 7 sustainability pillars into every aspect of our operation and culture.”

The cement producer currently has an installed capacity of 45.6Mta across 10 African countries.