As companies continue to count their losses and gains for the outgone year, for Africa’s largest cement producer, Dangote Cement Plc, it is a case of gains and more gains not only for its shareholders but the tax administration, positioning the company as a major contributor to the Nigerian economy.

This was brought to light according to the company’s audited results recently released on the floor of the Nigerian Stock Exchange (NSE), declaring a tax charge of ₦97 billion for the financial year ended December 31, 2020, even as it proposed a dividend of ₦16 per share. The new tax charge is coming on the heels of a 95 percent increase over the ₦50 billion recorded by the cement giant in 2019.

At a time where companies in Nigeria recorded lesser output, Dangote announced selling 15.9Mt of cement compared to the 14.1Mt figure for 2019. This includes both cement and clinker sales, representing a 12.9 percent growth for the whole 2020.

Amid a global pandemic, Dangote declares massive profit and dividend

More gains

Taxmobile.Online also learnt that Dangote’s Nigerian operations increased by 18 percent to ₦720 billion, owing to demand in the domestic market. The volume growth was enhanced by a successful innovative national consumer promotion, “Bag of Goodies – Season 2” and lower rains in the third quarter compared to the previous year.

The cement group also declared a record high Pan-African EBITDA of ₦71.3 billion, which went up by 49. Percent. Within the period under review, the company commissioned its gas power plant in Tanzania. Group earnings per share were up by 36.9 percent to ₦16.14k.

Dangote’s model of navigating the tides

Recall that during the year under view, Dangote Cement had adopted cost-saving measures that protected it from inflationary pressures and foreign exchange volatility, enabling the company to maintain a relatively flat cash cost per tonne. The cost control measures include improved plant efficiency, better fuel mix, and general overhead optimization.

On the bumper harvest, this is what the Chief Executive Officer of Dangote Cement, Michel Puchercos, had to say:

“2020 was a good year for Dangote Cement across the 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 while 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 percent 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 percent and Group EBITDA was up 20.9 percent.

“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 seven sustainability pillars into every aspect of our operation and culture.

Points to Note about Dangote Cement

  • Dangote Cement is a subsidiary of Dangote Industries Limited.
  • A diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, beverages, and real estate.
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