Dangote Cement Plc reported its 2023 second-quarter results showing pre-tax profits fell 14% to N93 billion.
This took half-year pre-tax profits to N239.9 billion versus N264.8 billion same period last year.
Dangote Cement also reported an exchange rate loss of N103.8 billion in the second quarter of the year due to the unification of the naira.
Key highlights 2023 Q2
- Revenue N544.1 billion +37.8%
- Operating profit N93 billion +64.9%
- Finance cost N130.1 billion +385%
- Exchange rate loss of N103.8 billion
- Short-term loans N683.4 billion vs N338 billion (2023 Q1)
- Long-term loans N370.7 billion vs N342 billion (2023 Q1)
- Working capital -N233.7 billion vs N126.2 billion (2023 Q1)
- Gross margins 59.7% vs 57.4% YoY
- Operating profit margin 41% vs 34.3%
- Earnings per share N3.95 vs N3.92
- Net cash flow from operating activities N355.2 billion
- Production volume 6,909 vs 6749
Insights: Dangote Cement reported strong operating profit earnings in the second quarter of the year represented by a 65% increase in operating profits.
- However, just like most corporates, they also incurred N103.8 billion in foreign exchange losses.
- The forex component of Dangote Cement’s loans is N217.4 billion made up of letters of credit.
- The loans are at a Secured Overnight Financing Rate (SOFR) plus 10%
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