Dangote Cement to pay N97 bln in tax, N16 per share dividends to shareholders for 2020 FY
Dangote Cement said it will contribute a total of N97 billion to government coffer through taxation from its operations at the end 2020 financial year, while it will payout N16 dividends per share to its shareholder.
The cement firm, majorly owned by Africa’s richest man Aliko Dangote tax payment from its revenue represents an increase of 95 percent over the sum of N50 billion paid into the government coffer in the previous year.
In its financial report for last year, the company sold a total of 15.9 metric tonnes of its product compared with 14.1 Metric tonnes in 2019.
This includes both cement and clinker sales, which implies a 12.9 percent growth for the full year 2020.
The bulk of the product sale, which stood at 15.9 metric tonnes was sold through its Nigerian operations, up by 14.3 percent year on year and resulting in an increase in market share.
Revenue for the Nigerian operations increased by 18.0 percent to ₦720 billion, due to demand in the domestic market. This volume growth was enhanced by a successful innovative national consumer promotion “Bag of Goodies – Season 2” and lower rains in the third quarter compared to the previous year, according to a statement by the company.
The Nigerian business recorded a strong Earnings before interest, taxes, depreciation and amortization (EBITDA) of N421.4 indicating a margin of 59 percent.
Dangote Cement posted a record high Pan-African EBITDA of N71.3 billion, which went up by 49.0 percent. Within the period under review, the cement group commissioned its gas power plant in Tanzania. Group earnings per share was up by 36.9 percent to N16.14.
Dangote Cement recorded strong performance not only at the top line but also at the bottom line, owing to cost-saving measures.
Despite inflationary pressures and foreign exchange volatility, disciplined cost control measures enabled the company to maintain a relatively flat cash cost per tonne. The cost control measures include improved plant efficiency, better fuel mix and general overhead optimization
Chief Executive Officer, Dangote Cement, Michel Puchercos, in his comments on the results, said: “2020 was a good year for Dangote Cement across board.
Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme.
We increased our capacity by 3Mt in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All these were achieved whilst we focused on protecting our people, customers and communities from the impact of the pandemic.
“Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year.
These measures resulted in a 37.7 percent increase in profit after tax to N276.1 billion.
“I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, Group volumes for the year were up 8.6 percent and Group EBITDA was up 20.9 percent.
“Looking ahead, we have strengthened our Alternative Fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currencies fluctuations.
“We continue to embed Dangote Cement’s 7 sustainability pillars into every aspect of our operation and culture.
“We remain committed to keeping safe our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”
Dangote Cement Plc is sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6 Mta across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement.