Dangote Cement plc has announced 48.6 per cent decline in profit to N200.5billion in 2019 financial year, compared to N390.33 billion reported in 2018 financial year.
The audited result and accounts that was published on the Nigerian Stock Exchange (NSE) disclosed that Profit Before Tax (PBT) closed 2019 at N250.48billion, 16.7 per cent below N300.81billion reported in 2018.
With the decline in profits, the management of Dangote cement proposed a final dividend of N16.00 per share subject to ratification by the shareholders at the coming annual general meeting (AGM).
The cement manufacturing company reported a decline of 1.1 per cent in revenue to N891.67billion in 2019 as against N901.2billion reported in 2018.
Dangote cement operating expenses gained 30.2 per cent to N214.77billion in 2019 from N189.4billion reported in 2018, while net finance cost grew by 30.2 per cent to N50.06billion in 2019 from N38.46billion in 2018.
However, the group total assets grew by 2.8per cent to N1.74trillion in 2019 from N1.69trillion in 2018
Dangote Cement, however, in its investment across Africa is bearing the desired results as Pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt.
According to the full year report released on the floor of the NSE, Dangote Cement Plant, Mtwara, Tanzania, recorded an increase of 94 per cent increase in volume within the review period. Dangote Cement Plant, Pout, Senegal put up a remarkable performance with sales up more than 100 percent of rated capacity.
Speaking on the result, Group Chief Executive Officer, Dangote Cement, Joe Makoju, said: “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets.
“The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.
“Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements.
“As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production.
“Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. I wish Mr. Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. it is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria.
Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).