Dangote Cement posts group net profit of N204 billion in 2017

Africas largest cement producer, Dangote Cement Plc has recorded a group net profit of N204.25 billion in 2017, representing a growth of 42.97 percent increase compared to the previous years figure of N142.86 billion.

The Cement producer released its full-year earnings on Tuesday, March 20, 2018.

The company proposed N178.9 billion dividend payout to the shareholders for the year ended, an increase of 23.5 percent from previous year.

The proposed amounts to N10.50 per share as against a dividend of N8.70 kobo per share that was paid in the corresponding period of 2016.

Joe Makoju, Acting Group Chief Executive Officer, Dangote Cement, while commenting on the results, said: “Dangote Cement turned in a record year with revenues up 31.0 percent to N805.6bn and EBITDA up by 50.9 percent to N388.1bn. Although Nigerian volumes were lower in 2017, our Pan-African operations increased volumes by 8.4 percent and now make up 42 percent of the Group’s total cement sales, demonstrating the robust diversification of our business."

'We expanded our footprint from eight countries to ten with the opening of new facilities in the Republic of Congo and Sierra Leone, while our operations in Cameroon, Senegal and Ethiopia achieved strong sales growth during the year. With total sales volumes of nearly 22 million tonnes, we are by far the leading manufacturer of cement in Sub-Saharan Africa.'

The group revenue also grew by 31 percent from N615.1bn in 2016 to N805.6bn while earnings per share rose to N11.65 compared to N8.78 at the previous year, indicating an increase of 32.7 percent.

Here are the highlights from Dangote Cement full-year 2017 earnings:

- Revenue increased from N615 billion in 2016 to N805 billion in 2017

- Profit before tax increased from N180 billion in 2016 to N289 billion in 2017

- Profit after tax grew from N142 billion in 2016 to N204 billion in 2017

- Sales volume decreased slightly by 7% from 23.5 million tonnes in 2016 to 21.9 million volumes in 2017

- A significant increase in income tax rate to 84 percent compared to 11 percent in the fourth quarter of 2016

- Inventories rose by 14.1 percent to N94.6 billion from 83.9 billion in 2016. The company’s cash holdings grew by 45 percent to N168 billion as against the N115.7 held in 2016.

- The company assets rose marginally by 8.9 percent to N1.67 trillion from N1.53 trillion in the full year 2016.

Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. A fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria

Recently, the Africa’s richest man and founder of Dangote Group, Alhaji Aliko Dangote raked in $350 million (N107 billion) selling 3.23 percent stake of the Cement company to foreign investors.

The cement maker was quoted to have sold 550 million shares at N225.7 each in a one-off stock market deal valued at $350 million (N107 billion).