Who does 50% profit margin year after year? Following its impressive 2012 financial year, Dangote Cement released its first quarter 2013 earnings with revenues soaring 40% to N66billion on the back of its capacity expansion program. Operating profit also rose 78% to N55billion as the company was able to increase revenues without seeing cost of sales rising in tandem. In fact, SG&A as a percentage of gross profit improved by 32% this quarter compared to last.
Dangote Cement posted a pre-tax profit of N53.6billion (2012:N29.7billion) at the end of Q1 2013. Earnings per share also increased 79% to N3.16 this quarter compared to last. Its share price rose 3.17% to N162 at the close of trading 30/4/2013.
This result shows the company is increasing sales rapidly and also increasing margins…a remarkable feat.
Dangote Cement 2013 Q1 results was posted on the website of the NSE
The profit being decleared by Dangote group is suggestive of the fact that the market is in an imperfect stage. The government should as a matter of policy break every barrier to entry into this very important sector of the econmoy. What we have now is a near monopooly market.
I totally agree with you. Funny thing is whenever the government loosens importation barriers they threaten to shut down operations.