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.
- 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.
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.”
“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:
“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.