Dangote Cement to Pay N97bn Tax, N16 Per Share Dividend for 2020
Following its performance for the year ended December 31, 2020, Africa’s largest cement producer, Dangote Cement Plc, has contributed N97 billion as tax charge, while shareholders would receive N16 dividend per share.
According to the cement group’s audited results released on the floor of the Nigerian Stock Exchange (NSE), yesterday Dangote Cement recorded strong performance not only at the top line but also at the bottom line, owing to cost saving measures.
Dangote Cement sold 15.9Mt in 2020, including both cement and clinker sales, implying a 12.9 per cent growth above the 14.1Mt in 2019.
Looking at the domestic sales alone, Nigerian operations sold 15.6 Mt, up by 14.3 per cent year on year and resulting in an increase in market share.
Revenues for the Nigerian operations increased by 18 per cent to N720 billion, owing to demand in the domestic market. The Nigerian business recorded a strong earnings before interest, taxes, depreciation and amortisation (EBITDA) of N421.4 billion indicating a margin of 59 per cent.
Commenting, Chief Executive Officer, Dangote Cement Plc, Michel Puchercos, said: “2020 was a good year for Dangote Cement 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 3.0 Mt in Nigeria, inaugurated our two export terminals and inaugurated 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 per cent increase in profit after tax to N276.1 billion.
“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.
“We remain committed to keeping safe our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”
SOURCE: THIS DAY