Dangote Cement Reports N364bn 2021 Net Profit, Grows Dividend By 25%

Dangote Cement Plc, on Monday evening presented its audited financials for the year ended December 31, 2021, showing among others that it remains the most profitable company listed on the Nigerian Exchange Limited yet, with net profit growing by 32% from N276.1bn to N364bn after double-digit growths in key parameters. It is followed by telecommunications giant- MTN Nigeria’s net profit of N298.654bn in the period under review, from N205.214bn.

Details of the result showed that Dangote Cement’s group revenue rose by 34% from N1.034tr in the corresponding period of 2020, to N1.384tr, with the Nigerian operations accounting for the lion’s share of N993.399bn, from N719.945bn; while the pan African business stood at N397.329bn from N318.681bn. The production cost of sales increased from N437.97bn to N551.019bn; the bulk of which was the material consumed, amounting to N175.367bn from N134.91bn; and fuel and power consumed at N196.634bn, up from N146.342bn; among others. This resulted in a gross profit of N832.618bn, compared to the previous N596.226bn.

Administrative expenses rose to N64.349bn from N60.339bn; selling and distribution expenses jumped from N153.719bn during the 2020 full-year to N191.658bn, lifN147.495bn haulage expenses, which rose by N98.954bn; other income increased to N6.221bn from N4.754bn; as profit from operating activities soared from N386.734bn to N582.491bn.

Finance income dropped to N20.765bn from N29.814bn; as finance cost increased to N65.707bn, as against the N43.988bn in the corresponding period of 2020, driven by the N57.173bn interest expenses, even as the group suffered a foreign exchange loss of N8.766bn, which did not exist in the prior year. Profit before tax climbed to N538.366bn from N373.31bn; even as income tax expense increased by N76.685bn, or 78.85%. Net profit from Nigeria stood at N439.16bn, from N370.317bn; which was negatively impacted by the loss of N30.583bn from the pan African business, representing a significant improvement over the N81.12bn loss recorded in the preceding year. The net profit, therefore, amounted to Earnings Per Share of N21.24, compared to N16.14, out of which the directors have recommended a N20 dividend per share, up by 25% from the prior year’s N16.14 each.

The register of shareholders will be closed on May 31, 2022, while dividend will be paid electronically on June 15, 2022, to those who remain shareholders of the company as at May 30, 2022, after approval at the annual general meeting on the previous day in Lagos.