Dangote Cement Plc, on Friday reported a growth in profit for the half-year ended June 30, 2017, even as revenue from sale of cement across the country rose by N120.485bn or 41.34%, just as profit after tax for the period rose to N40.624bn, representing a slower 39.28%.
Specifically, customers purchased a total of 42.55m metric tonnes of cement worth N412.676bn; compared to the 29.25m MT valued at N29191.bn in the preceding half year.
Production cost of sales jumped to N177.549bn, an increase of about N38.187bn or 27.56% from preceding half year’s N139.187bn; following significant increases in material consumed from N38.972bn to N57.686bn; while fuel and power consumed rose further from N51.174bn to N58.863bn. Salaries and related staff costs increased to N12.945bn from N22.204bn; plant maintenance cost remained flat at N12.945bn, from N12.091bn
Gross profit increased by N82.123bn or 53.67% to N235.127bn, as against the previous N153.004bn.
Administrative expenses for the period stood at N20.95bn, up from N19.08bn; selling and distribution expenses increased to N51.89bn from N37.23bn; which when added to other income of N1.211bn, down from N1.348bn, leaving operating profit of N163.498bn, as against the previous half-year’s N98.042bn,representing a growth of about N65.456bn or 66.76%.
Finance income for the half year fell to N16.487bn, compared to N43.56bn in the corresponding half year of 2016, broken down into interest income of N5.277bn, just as foreign exchange gains came to N11.21bn. Finance costs ballooned from N16.712bn to N24.404bn, being interest expenses for the period, as against N16.917bn in the 2016 half year.
This resulted in profit before tax of N155.581bn, up from N124.89bn in the previous half year.
Income tax expense was down to N11.537bn from N21.47bn; leaving profit after tax at N144.044bn, a N40.624bn or 39.28% increase over the N103.42bn recorded in the first half of 2016. This translated to earnings per share of 842 kobo, compared with the 623 kobo reported, a year earlier.