The board of Dangote Cement Plc, on Friday presented its audited financials for the half-year ended June 30, 2020, highlights of which were the flat growth in sales revenue, even as net profit grew at a relatively faster pace than the previous year’s numbers, helped by foreign exchange income of N5bn during the period.
According to the financials released through the Nigerian Stock Exchange (NSE), revenue for the period stood at N476.852bn, up by 1.95% from N467.73bn, selling 12.114 metric tonnes, down slightly from 12.294MT. Sale of cement and clinker fetched N476.84bn from N467.604bn. A breakdown of the numbers according to location showed that Nigeria remained its biggest market, contributing N332.377bn, rising from N328.287bn; while its pan-African operations fetched N145.025bn, compared to N140.088bn.
Cost of sales was marginal up by 4.79% from N193.172bn to N202.42bn, the bulk of which went into fuel and power consumed gulped N64.497bn, compared to N62.224bn; followed by material consumed of N64.058bn, up from N60.412bn. Depreciation and amortization dropped from N32.539bn to N31.571bn; while salaries and related staff costs climbed marginally up from N16.41bn to N17.465bn; among others. This resulted in gross profit of N274.432bn, as the previous N274.558bn.
Administrative expenses climbed up from N24.978bn to N26.051bn, boosted by ‘other’ admin expenses of N9.036bn from N9.006bn; ahead of salaries and related staff costs which rose to N7.027bn from N6.339bn. Selling and distribution expenses dropped by N2.67bn or 3.32% from N80.312bn to N77.642bn, with the biggest drop recorded in haulage expenses, from N55.796bn to N50.655bn; while depreciation dropped from N11.779bn to N9.977bn. Salaries and related staff costs rose to N9.821bn from N8.197bn; just as advertisement and promotion increased from N3.098bn, to N5.299bn.
Other income rose from N2.365bn to N2.74bn, particularly sundry income amounting to N2.444bn from N2.125bn.
Profit from operating activities stood at N173.479bn, as against the N170.496bn.
Finance income (interest) inched from N4.611bn to N5.226bn, comprising interest income of N5.226bn, from N4.611bn; and ‘other’ finance income (being foreign exchange gains) of N5bn from nil in the prior half-year. Finance costs increased from N19.619bn to N20.854bn, driven primarily by interest expenses of N20.628bn, up from N15.418bn; while foreign exchange loss amounted to N4.032bn in 2019.
Profit before tax therefore inched 4.74% up from N155.488bn to N162.851bn, but total income tax increased from N36.248bn in the 2019 half year to N36.708bn; while profit after tax rose 5.79% from N119.24bn in 2019 to N126.143bn, translating to Earnings Per Share of N7.45 from N7.01; just as net profit margin stood at 26.45%.
