Dangcem sees profit surge 32% on increased cement sales

Dangote Cement, the largest cement company in Africa has recorded a 32 percent increase in its 2021 full-year profit, thanks to the increase in sales of cement.

The company’s profit after tax surged to N364.44 billion compared to N276.07 billion in the same period last year.

This is attributed to the increase in sales of cement by 33.79 % to N1,383.64 billion from N1,034.19 billion in the comparable periods. In the same period, its production volume increased to 28.5 million from 24.7 million, according to its financial statement.

BusinessDay analysis shows the revenue was earned from the group’s two reportable operating segments which include Nigeria and other entities operating outside Nigeria (PanAfrica).

Sales from Nigeria yielded revenue of N993.39 billion in 2021 compared to N719.95 billion in the previous year while revenue from other entities outside Nigeria was N397.33 billion compared to N318.68 billion earned in the previous year.

Dangcem’s share has grown by 6.42 percent, year to date to N273.5 as of Wednesday.

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Although, cost of sales also increased to N551.02 billion from N437.97 billion, gross profit surged by 39.65 percent to N832.62 billion from N596.23 billion.

The leading cement group recorded an increase in finance cost by 49.37 percent to N65.71 billion from N43.99 billion in the previous year, however it saw a decline in finance income.

Finance income declined by 30.33 percent in 2021 to N20.77 billion from N29.81 billion, the previous year.

BusinessDay analysis shows the company realised a profit margin of 26.34 percent, indicating its efficiency in managing it’s expenses.

The group’s total assets grew to N2.39 trillion in 2021 from N2.02 trillion the previous year. Likewise, its liabilities grew to N1.41 trillion from N1.13 trillion in the comparable period.

Dangcem recorded a 16.57 percent increase to N597.71 billion in net cash flow from operating activities in 2021 from N511.89 billion in the comparable periods.

Dangcem however, recorded an increase in the cash used in financing activities by 66.73 percent to N332.22 billion from N199.26 billion.

Net cash flow used in investing activities declined to N126.87 billion from N272.48 billion.

Earnings per share increased toN21.24 from N16.14.