Dangote Cement Revenue Jumps By 21% In H1 2016

Giant Cement manufacturer, Dangote Cement Plc has announced a significant leap of 21 per cent in its revenue for the period ended June 30, 2016.

The group, in its half year 2016 result sent to the Nigerian Stock Exchange, NSE, on Thursday, July 28, showed that its revenue moved from N242.23 billion to end the period with N292.19 billion.

According to half year result of Dangote Cement Group for 2014, its profit- before- tax declined marginally by 3 per cent to N124.89 billion from N128.73 billion, while profit- after- tax declined by 15 per cent to N103.42 billion from N121.81 billion in 2015.

This has led to a drop of 15.93 per cent in the company’s earnings per share to N6.07 from N7.22 in the same quarter, the previous year.

The results showed that cost of sales rose to N64.72 per cent to N139.19 billion from N84.5 billion in the corresponding period a year ago, finance cost also rose by 384.32 per cent to N118.08 billion compared to N24.38 billion in 2015, while total operating expenses jumped to N56.31 billion from N37 billion.

The chairman, Dangote Cement, Alhaji Aliko Dangote, had explained that, “As a result of the sizeable investment that we have made over the past few years has led to an increase in the company performance.”

He said that the company would double its production capacity over the next three years and half of its output by the end of 2019 would come from African plants outside its home market.

“The company plans new plants in Nigeria which will add between 9 million and 12 million tonnes to its existing capacity and will also expand production into Ivory Coast, Liberia, Mali, Niger, Kenya and Zimbabwe,” he said.

The company said that plants in Republic of Congo and Sierra Leone would become operational this year, adding that Dangote Cement, which currently has an annual production capacity of 43.6 million tonnes, targets output of between 74 million and 77 million tonnes by the end of 2019 and 100 million tonnes of capacity by 2020.

The building materials  manufacturer currently has highest market capitalisation on the Nigerian bourse of N3.07 trillion as at July 28, 2016 with market price of N180.06 per share.