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Markets

Dangote Cement joins MTN in the trillion-naira club, as 2020 revenue surpassed N1 trillion

Dangote Cement becomes the second Nigerian corporate entity to attain the N1 trillion revenue mark, after MTN.

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Dangote Cement Plc. appoints Ms. Berlina Moroole as non-Executive Director

Leading cement manufacturer, Dangote Cement Plc (DCP) recently declared in its audited financial statement for the financial year 2020, a record high revenue of N1.03 trillion, making it the second Nigerian listed entity after MTN to surpass the N1 trillion mark.

The cement behemoth’s revenue expanded by 16% year-on-year to N1.03 trillion, with about N720bn of the revenue generated from its operations in Nigeria, while its Pan-Africa operations generated about N320 bn revenue in 2020.

The strong top-line growth was supported by strong cement demand, driven by the strong appetite for real estate investment and the recovery of infrastructure spending – including more concrete roads.

READ: Dangote Cement gains N133 billion, as shares increase in value by 3.6%

  • Sales volume for both cement and clinker products increased by 8.9%, driven by the resurgence in demand in the third quarter and fourth quarter of 2020.
  • The company’s profit surged by 37.9% year-on-year to N276.1 bn.
  • Dangote Cement Plc announced a N16.00 per share dividend, driven by the increase in profits and cash flow generated from operations.
  • The cement company generated a net cash flow of N511.89 bn from its operating activities higher than 2019 figures (N426.12 bn).
  • The cement behemoth repurchased 0.24% or 40,200,000 units of the company’s issued and fully paid ordinary share, at N9.77 bn.

READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020

Dangote Cement experienced its strongest year in terms of volumes and EBITDA, as the Group’s Earnings Before Interest, Taxation, Depreciation, and Amortization increased by 20.9% to ₦478.1 bn, despite a challenging environment.

The company’s strong margin driven by its cost control measures and minimal exposure of its cost base to currency fluctuations resulted in a 37.9% surge in profit to N276.1 bn.

What they are saying

Commenting on the Dangote Cement’s financial performance in 2020, Michel Puchercos, the Group Chief Executive Officer of the leading cement maker, said:

“I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, Group volumes for the year were up 8.6% and Group EBITDA was up 20.9%, at a 46.2% margin.”

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READ: Dangote Cement proposes N272 billion as dividend for 2020

“Despite the impact of the COVID-19 pandemic, 2020 was a record year for Dangote Cement across the board. Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance, and successful buyback programme.”

In his statement on key expansion in 2020 in the company’s installed production capacity, Pucheros said:

Stanbic 728 x 90

“We increased our capacity by 3Mt in Nigeria, and commissioned our two export terminals, and commissioned our gas power plant in Tanzania. All this was achieved whilst we focused on protecting our people, customers, and communities from the impact of the pandemic.”

In line with this move, Dangote Cement’s production capacity expanded from 45.55 million mtpa to 48.55 million mtpa, cementing the company’s status further as the largest cement manufacturer in the African continent.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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Cryptocurrency

Bloody Sunday: Over 1 million investors liquidated, altcoins crash by 20%

For the day, about 1,018,638 investors had their account worth about $10 billion liquidated.

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A significant number of investors in the crypto market have had their accounts liquidated amid the sudden drop seen in a number of altcoin assets.

For the day, about 1,018,638 investors had their account worth about $10 billion liquidated. The largest single liquidation order happened on Binance-BTC valued at $68.73 million.

The flagship altcoin is under high selling pressure with Ethereum trading at $1,952 at the time of writing this report, down 21.46% for the day. It is the biggest daily drop since March 12, 2020.

Such a fall pushed Ethereum’s market value to $247.15 billion, or 12.16% of the total cryptocurrency market value. At its highest, Ethereum’s market value was close to $300 billion.

On the altcoins side, the sudden crash at the time of writing this report could not be fully assessed, but market sentiments point to rumours that the U.S. Treasury is planning to charge several financial institutions for money laundering using crypto.

Top cryptos such as XRP lost as much as 21.17%, Polkadot and Litecoin were down by 20%, bitcoin cash down 20% for the day, while dogecoin has lost about 15% in value.

Many weeks ago, leading United Kingdom financial regulator, the Financial Conduct Authority, issued a piece of stern advice on crypto investments. The statement highlighted the risks associated with investing in Bitcoin and other crypto assets and warned the public that there were high chances that all their funds could be lost.

“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.

“Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.

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That said, a significant number of crypto investors appear to be shrugging off the huge fall as another typical bump on the crypto path, and one which, no doubt, will likely see crypto trading volume return as crypto investors look to buy what many are viewing as a bargain, to buy into what is still very much a bullish run.

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Cryptocurrency

Crypto Armageddon: Over $200 billion wiped off in the Crypto market 

The global crypto market value was put at $2.03 trillion, a 10.42% plunge for the day.

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Crypto

The Crypto is under intense selling pressure amid the recent sell-offs in the cryptoverse, as the fast ever-changing Crypto market lost over $200 billion in value within a few hours.

The flagship crypto was down by more than 5,000 dollars pulling back below $60,000.

At the time of writing this report, the global crypto market value was put at $2.03 trillion, a 10.42% plunge for the day.

The crypto market has shed much of its stellar gains earlier recorded, as significant selling pressure from crypto investors pushed the value of cryptos lower across the market spectrum amid profit-taking.

Other Crypto assets like XRP, Bitcoin Cash EOS, lost as much as 20% within a twinkle of the eyes.

Market pundits argue that a likely factor for such intense drop was the relatively high funding rates for taking long positions on Bitcoin alongside a strong dark cloud built around the $64,000-$65,000 price level.

Adding credence to such bias is Cantering Clark, a popular crypto strategist, who added that recent data points to the market cooling off arbitrarily.

“50k and 80k strikes highest contract/notional for $BTC I think these writers will be happy and I am still in the same opinion that the end of April – May begins the shift that makes Bitcoin a less favourable long. No breakout, just range and rotation.”

Crypto pundits anonymously interviewed by Nairametrics are saying that a market correction was long overdue after the sudden bullish move.

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The bearish trend prevailing at the bitcoin market is largely attributed to a significant amount of profit-taking in play, on the account that Bitcoin’s realized profits are at record highs.

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