![[ANALYSIS] This Should Have Been Dangote Cement’s Best Quarter But for This…](https://nairametrics.com/wp-content/uploads/2015/07/Nearly-there.jpg)
Dangote Cement 2015 Second Quarter Results. Scroll down to see brief analysis of the results
Snap Shot
| Dangote Cement | 2015 Q2 | 2015 Q1 | %age Change |
| N’m | N’m | ||
| Income Statement | |||
| Revenue | Â Â Â Â Â Â Â Â 127,478 | Â Â Â Â Â Â Â Â Â Â Â Â 114,737 | 11.1% |
| Cost of sales | Â Â Â Â Â Â Â Â (44,504) | Â Â Â Â Â Â Â Â Â Â Â Â (39,997) | 11.3% |
| Gross Profit | Â Â Â Â Â Â Â Â Â Â 82,974 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 74,740 | 11.0% |
| Operating Expenses | Â Â Â Â Â Â Â Â (19,408) | Â Â Â Â Â Â Â Â Â Â Â Â (17,595) | 10.3% |
| Operating Profit | Â Â Â Â Â Â Â Â Â Â 63,566 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 57,145 | 11.2% |
| Other Income | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 399 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,295 | -69.1% |
| Net Finance (Cost)/Income | Â Â Â Â Â Â Â Â Â Â (5,407) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 11,728 | -146.1% |
| Profit Before Tax | Â Â Â Â Â Â Â Â Â Â 58,558 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 70,168 | -16.5% |
| Taxation | Â Â Â Â Â Â Â Â Â Â (5,369) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (1,549) | 246.7% |
| Profit after Tax | Â Â Â Â Â Â Â Â Â Â 53,189 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 68,619 | -22.5% |
| Tax as a %age of PBT | 9% | 2% | |
| Indices | |||
| Eps (N) | 3.1 | 4.0 | 29% |
| Outstanding Shares | Â Â Â Â Â Â Â Â Â Â 17,041 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 17,041 | |
| Debt to Equity | -160% | 35% | -122% |
| Gross Profit Margin | 65% | 65% | 0% |
| Operating Profit Margin | 50% | 50% | 0% |
| Profit Margin | 42% | 60% | 43% |
| SGA as a %age of Gross Profit | 23% | 24% | 1% |
| Interest Cost as a percentage of Operating Profit | 9% | -21% | -341% |
| Asset Turnover % | 51% | 20% | -60% |
| Return on Equity | 41% | 22% | -46% |
| Return on Asset | 26% | 10% | -61% |
Dangote Cement released its 2015 second quarter results showing revenues grew quarter on quarter to N127.4 billion representing an 11% growth.
Bigger Operating Margins
The company also posted a Gross Profit margin of 65% making N82.9 billion in Gross profit. Operating profits also rose this quarter by 11% to N63.5 billion the highest it has ever recorded since we started tracking Dangote Cement. This should have made this result the best quarter yet however it was not to be.
Finance Charges & Higher Taxes
Dangote Cement pre-tax profits  dropped 16.5% to N58.5 billion compared to the N70 billion posted a year earlier. The reason for the drop in pre-tax profits was a N5.4billion finance charged it booked this quarter compared to the N11.7 billion Finance income it booked in the preceding quarter.
Dangote Cement also paid higher taxes this quarter incurring a N5.3billion tax charge this quarter compared to N1.5 billion in Q1.
More loans more spending
Dangote Cement also continued its investment spree spending another N49.5 billion this quarter basically equalling that N49.5 billion it spent in Q1. Dangote has now spent N99 billion this year alone as it ramps up production capacity locally and in other African countries.
Dangote Cement also added another N80 billion to its borrowings taking the total to about N315 billion.
Share Price
Dangote Cement is currently trading at N170 with a price earnings ratio of 15.4x. Its share price has returned -11.2% YTD and as also lost 22% in the last 12 months.
Note: I now prefer to analyse interim results on a quarter on basis (both year on year or quarter over quarter) as it gives me a closer and intricate view of the company performance.
