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Dangote Cement to pay N173.9 bln income tax in 2021, 79% more than previous year

Dangote Cement Plc, Africa’s largest building material firm is expected to pay N173.93 billion in tax to the national treasury from its operating profit at the end of December 2021, financial year,  sustaining  its position as a leading  contributor to the Nigerian  economy.

According to the cement group’s audited financial results released on the portal of the Nigerian Exchange Ltd (NGX), the tax charge represents an increase of 78.7 percent over the sum of N97.24 billion tax payment in the previous financial year.

In the financial report, the company said its cement sales volume grew by 13.80 percent to 29.27Mt at the end of 2021 financial year from 25.72Mt in the previous year, with Nigeria accounting for 18.61Mt while operations in other countries accounted for the balance of 10.86Mt.

Group revenue was N1.38 trillion for the full year, made up of N993.34 billion from Nigeria while revenue from across African plants stood at N397.32 billion; this is compared with the group revenue of N1.034 trillion in the preceding year, which constituted of N719.95 billion from Nigeria and N318.68 billion from other African operations.

Dangote Cement posted a gross profit of N538.37 billion and after-tax profit of N364.44 billion while earnings per share (EPS) rose to N21.24 from N16.14.  Consequently, the company’s directors have proposed a dividend of ₦20.00 per share.

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Speaking on the results, Chief Executive Officer of Dangote Cement Michel Puchercos said, “We are pleased to report a solid set of the results for the full year 2021. Group volumes for the year were up 13.8 percent and Group EBITDA was up 43.2 percent, at a 49.5 percent margin. I am delighted to report that Dangote Cement experienced its strongest year across all line items, with a record PAT of ₦364.4B up 32.0 percent.”

“Our business model remains robust, thanks to the prudent and flexible approach we have taken across our operations. Due to an increased focus on efficiency while meeting double-digit market growth and maintaining costs under control, Dangote Cement has and will consistently deliver superior profitability and returns to its shareholders,” he added.

Dangote Cement became the first Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy. Adopting XBRL reporting format will strongly benefit Dangote Cement’s existing and potential investors. It represents another step in continuing efforts to modernize and enhance transparency of, and access to, companies’ disclosures.

Dangote Cement Plc is sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6Mta across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.

Dangote Cement has a long-term credit rating of AA+ by GCR and Aa2.ng by Moody’s due to its market leading position, significant operational scale and strong financial profile evidenced by the company’s robust operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow and low leverage.

Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, beverages, and real estate, with new multi-billion-dollar projects underway in the oil and gas, petrochemical, fertiliser and agricultural sectors

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