Dangote Cement profits rise 4.7% to N162.85 bln in H1 2020
* Restarts production in S/Africa, Ghana, Congo
* Covid-19 lockdown impacts sales
Dangote Cement Plc posted a 4.73 percent increase in its profit before tax to N162.85 billion at the end of its first six months operations in 2020 compared with N155.48 billion posted in the same period of last year, the company said on Friday.
The cement firm, majorly owned by Africa’s richest man Aliko Dangote also posted 1.95 percent growth in its revenue for the period to N476.85 billion against N467.73 billion in the same period of 2019. Its profit after tax grew 5.78 percent in the half-year to N126.14 billion compared with N119.24 billion in the same period of last year.
The cement firm said it recorded reduction in sales during the first half of the year due to the twin impact of coronavirus lockdown and raining season.
“In our Pan Africa operations, the response by the authorities of these countries varied in nature from specific
temporary restrictions in some countries to a complete temporary lockdown for businesses that are not
considered as part of the essential services.
“This notably resulted in total shutdown of our plants in South Africa, Congo and Ghana for a period of time. The restrictions in most countries were revised during the second quarter with our plants restarting production,” the company posted in its regulatory filing on Friday.
The company said in Nigeria; “Our plants continued to operate during this period but we witnessed a reduction in sales volumes for the second quarter of 2020, compared to the same period for 2019. Any further lockdown or more stringent restrictions could result in reduced volumes in the future.”
Dangote Cement said the restrictions resulted in reduced volumes for the countries that had temporary full lockdown.
“Authorities appear to be continuously assessing the spread of the virus and amending these temporary restrictions accordingly. We have considered the impact of the restrictions across the jurisdictions we operate in and concluded that the business will remain a Going Concern in the foreseeable future.”
The cement firm had raised N100 billion in 5-year tenor commercial paper in April as part of moves to part finance existing debt and boost working capital.