Dangote Cement, a multinational cement manufacturer, has recorded a 250 percent growth in its cash and cash equivalents for the first nine months of 2023, a BusinessDay has shown.
According to the firm’s financial statement, its cash and cash equivalents rose to N304.2 billion in the nine months of this year from N86.9 billion in the same period of 2022. Its cash flow which includes cash and bank balances stood at N209.9 billion and short-term deposits at N175.3 billion. Bank overdrafts used for cash management purposes were deducted which was N81.11 billion.
“Cash and cash equivalents include restricted cash of N4.77 billion for group and N3.92 billion for company (December 2022 N5.38 billion for the group and N4.93 billion for company) on unclaimed dividend held in a separate bank account, letters of credit for the acquisition of inventories, property, plant and equipment as well as debt service reserve account,” the company said in a statement.
Movements in cash and cash equivalents
Dangote’s net cash generated from operating activities increased to N460.3 billion in the first nine months from N302.0 billion in the same period of 2022. Net cash used in investing activities stood at a positive of N45.5 billion from a negative of N129.1 billion.
The firm’s net cash used in financing activities stood at a negative of N347.9 billion from a negative of N342.3 billion.
Growth in profit and revenue
The cement maker’s profit after tax increased to N277.6 billion from N213.1 billion. Revenue was N1.51 trillion, up from N1.18 trillion.
Sales volume dropped
Dangote Cement’s total sales volume declined to 20.3 million tonnes from 20.8 million tonnes. However, cement production and bagging capacity increased to 52 million tonnes from 51.55 million tonnes.
Finance income declined
Finance income dropped to N20.8 billion from N28.8 billion and earnings per share rose to N16.1 from N12.4 per share.