Photo Caption: Chairman of Dangote Foundation, Alhaji Aliko Dangote and the Co-Chair of Bill and Melinda Gates Foundation visited the Chad Republic where they held discussions with Stakeholders on Polio Eradication and how to advance Child health in the region.

Dangote Cement Plc, the biggest company on the Nigerian Stock Exchange (NSE), on Tuesday presented its much awaited financials for the year ended December 31, 2017, which showed that it lived to its ranking in all ramifications, reporting the biggest sales revenue, profit and dividend proposal in the market so far.
The company maintained a two-digit growth in all major measurement parameters, such as 30% growth in revenue, while net profit rose 42.97%, despite the N47.27bn or 124.16% increase in income tax expense for the year from N38.071bn in the corresponding period of 2016 to N85.342bn. The net profit translates to N11.65 Earnings Per Share, an improvement over the previous N8.78, from which the directors have recommended N10.50, up from previous year’s N8.50 Dividend Per Share for approval of shareholders at the next annual general meeting. The dividend payout amounts to N178.9bn for the year, which is 23% juicier than prior year.
Specifically, revenue for the year rose by N190.479bn, or 30% from N615.103bn in the year-ended December 31, 2017 to N805.582bn, out of which sales of cement accounted for the lion’s share of N805.294bn, up from N614.936bn, while the rest came from sale of “other products.” A total of N552.364bn revenue was from Nigeria, while N258.444bn was derived from the group’s Pan-African business. Cost of sales increased by 8.48% to N351.29bn from N323.816bn; following which gross profit soared by N163.005bn or 55.96% to N454.292bn from N291.287bn.
Administrative expenses increased 23.75% from N36.669bn to N45.38bn; selling and distribution expense was up 32.96% to N109.917bn from N82.667bn, boosted by N74.653bn haulage expenses, up from N49.344bn in the prior year; even as other income dropped by N5.329bn or 50.55% from N10.542bn to N5.213bn; leaving operating profit at N304.208bn from N182.493bn, which represented an increase of N121.715bn or 66.69%. A further analysis of the figure showed that N316.8bn came from its Nigerian operations, while the Pan-African business suffered a N2.23bn loss.
Finance income, comprising N9.136bn interest income, as against N2.662bn, and N26.79bn foreign exchange gain, which fell from N41.155bn; dropped 18% to N35.926bn from N43.817bn. Finance costs climbed 16.15% to N52.711bn to N45.381bn, made up principally of the N52.101bn interest expenses, which soared from N45.583bn. The company’s share of profit from associate stood at N2.167bn, which did not exist in prior year.
Profit before tax stood at N289.59bn, up by N108.661bn or 60.05% from N180.929bn in the corresponding full-year of 2016; income tax expense climbed to N85.342bn from N38.071bn; resulting in net profit of N204.248bn, compared with N142.858bn in 2016. The Nigerian business recorded N265.528bn, while the Pan-African operations yielded N12.773bn loss.
Another revelation from the financials was that fuel and power consumed at N111.569bn, up from N112.265bn was same as N111.559bn material consumed, up from N87.203bn; even as other production expenses fell from N21.165bn to N14.653bn.
Commenting on the result, acting Group Chief Executive Officer, Dangote Cement, Joseph Makoju said: “We expanded our footprint from eight countries to 10 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 22m tonnes, we are by far the leading manufacturer of cement in Sub-Saharan Africa.”